November 18, 2013 Ch. 9 Key Issue 1

• BW- What is Development??????• Upon answering question, students will

review and watch- “The Science of Overpopulation”-How does this affect development????

• Where would we like to go on vacation? – Preferably a popular, yet less-developed destination

• What makes this an attractive destination?– Amenities, climate, scenery, food/lodging $

• Are the people who live in this place year-round fortunate to live at such a desirable location?

• What do the local people depend on for income?• What do the people in this country who do not live in a

tourist area do for work?• Can any of these people who want to vacation in the US

come? Why/why not?

VACATION

• The world is divided by relatively rich and relatively poor countries

• We will try to understand the reasons for this division and learn what can be done about it

• Caribbean island vacation– Who works at the resorts?– What is life like surrounding the resort? – How would you feel?

A world divided

What is Development?November 18, 2013

The process of improving the material conditions of people

through the diffusion of knowledge and technology

More developed countries (MDCs)AKA developed countries

Lesser developed countries (LDCs)AKA emerging or developing countries

Course Outline• VI.Industrialization and Economic Development 13–

17%• A.Growth and diffusion of industrialization• 1.The changing roles of energy and technology• 2.Industrial Revolution• 3.Evolution of economic cores and peripheries• 4.Geographic critiques of models of economic

localization• (i.e., bid rent, comparative costs of transportation),

industrial• location, economic development, and world systems

• Content Area section)• B.Contemporary patterns and impacts of

industrialization and• development• 1.Spatial organization of the world economy• 2.Variations in levels of development• 3.Deindustrialization and economic restructuring• 4.Globalization and international division of labor• 5.Natural resources and environmental concerns• 6.Sustainable development• 7.Local development initiatives: government policies• 8.Women in development

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• 5 factors: Most important GDP– Economic structure, worker productivity, access to raw

materials, and availability of consumer goods

GDP PER CAPITA• MDC: $15 per hour• LDC: $2 per hour• GDP: value of the total output of goods &

services produced in a country– Divide GDP by population = contribution made by the

ave individual toward generating a countries wealth in a year

ECONOMIC INDICATORS OF DEVELOPMENT

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• Jobs fall into 3 categories: – Primary, Secondary, Tertiary

• Comparing types of economic activities in MDC/LDC– Look at the % of people working in each category

• Primary sector: directly extract materials from E– Via farming, mining, fishing, foresting

• Secondary: process, transform, and assemble raw materials into useful products

• Tertiary: provision of goods in exchange of $– Retail, banking, law, education, & gov’t

Types of jobs

• Economic indicators of development

Economic activities:• Primary sector• Secondary sector• Tertiary sector:

Quaternary, Quinary

• Productivity: value of a product compared to amount of labor needed to make it

• Value added: gross value of the product – the cost of raw materials and energy – ~$80k US, $70k Japan, $1k China, $500 India

• Workers in MDCs produce more w/ less effort – More machines, tools, equipment, etc.– MDC workers are more productive

Productivity

• Development requires raw materials & energy sources– Iron Ore and Coal help transform UK in late 18th C– Resources depleted, est. colonies to import more

• Specific raw materials become important bring dvlpmt– If an LDC has oil, they may develop to an MDC

• A country’s abundance of resources=chance of dvlpmt• Exceptions to that rule

– Japan, Singapore, S.Korea, and Switzerland – Success through world trade

Raw materials

• MDC: goods & services devoted to transp & comm. – Vehicles, phones, computers – Helps provide access to jobs & spreads info– More leisure activities available

• LDC: Not as concerned with tech. advances – “Haves” and “Have nots” – Spread from urban to rural

• Connecting MDCs and LDCs through technology

Consumer goods

How is development measured?

• Social indicators of development– Education and

literacy• The literacy rate

– Health and welfare• Diet (adequate

calories)• Access to health

care

How is development measured?• Demographic indicators

of development– Life expectancy

• Babies born today in MDCs have a life expectancy in the 70s; babies born in LDCs, in the 60s

– Other demographic indicators:

• Infant mortality• Natural increase• Crude birth rate

• More developed=^quantity and quality the edu.• Quantity=ave # of school years attended• Quality=student/teacher ratio and literacy rate• Literacy rate: % of people who can read/write

– MDCs=98% LDC=60%• MDC=10 years in school

– LDC=a few• MDC: student/teacher ratio is 2x higher than LDC

Education & Literacy

Student-Teacher Ratios

Students per teacher, primary school level. Primary school teachers have much larger class

sizes in LDCs than in MDCs, partly because of the large numbers of young people in the population (Also, refer to Fig. 2-15).

Persons per Physician

There is a physician for every 500 or fewer people in most MDCs, while thousands of people share a doctor on average in LDCs. Especially in rural areas. Urban

areas tend to be much better served.

Calories per Capita

Daily available calories per capita as percent of requirements. In MDCs, the average person consumes one-third or more over the required average minimum, which accounts for the obesity found in North America and some affluent

countries.In LDCs, the average person gets only the minimum requirement or less.

• 1st economically • 17th in education

– 28th math– 18th reading– 22nd science

• 1st in crime – 1st incarceration– 24th homicide

• 1st obesity • 19th democratic freedoms

US RANKINGS

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November 19, 2013MDC v. LDC- Activity

• Students will be placed in areas of the room labeled MDC and LDC based on accurate world population percentages.

• As a class determine the percentage of the world’s population that lives in each section. Students will be based on an individual country. For example, 2 of the 5 students in MDC might be labeled U.S.A.

• Discuss results. Was the outcome what you expected? Any surprises? What does it mean to be developed as a country?

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Where are MDCs and LDCs Distributed?

• More developed regions– North America and Europe– Other MDCs with high HDI = Russia, Japan,

Australia, and New Zealand

• Less developed regions– Latin America = highest HDI among LDCs– Southwest Asia, Southeast Asia, Central

Asia = similar HDI– South Asia and sub-Saharan Africa = low

levels of development

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• Countries are categorized into 9 regions– Based on their development

– Japan and South Pacific aren’t part of the 9

• North-south Split– Circle the earth at 30º

– Above 30º=MDC (for the most part) South=LDC

Location of more/less developed countries

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More and Less Developed Regions

Figure 9-10

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Today in Class:

1.Students will color and label on maps, where the MDCs and LDCs are located.2.Students will work on worksheet, comparing LDCs and MDCs.

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ANGLO-AMERICA (HDI .94)

•USA/CANADA – English 1st lang. & most adhere to

Christianity – Some cultural tension (race and religion) – Abundance of natural resources (decline

of manu) – Leader in financial, mgmt, & high tech

services – Big promoter and supplier of

entertainment/leisure – World’s most important food exporter

More Developed regions

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WESTERN EUROPE (HDI .93)

•Indo-European languages & Christianity – Conflict arise over cultural identities – Competition among nationalities

causes WWI & WWII– Influx of Muslims and Hindus spark

pop growth – Highest level of development (exclude

S Italy, Portugal, Spain and Greece)– Importers of food, energy minerals– Worlds largest and richest economic

market

More developed regions

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EASTERN EUROPE (HDI .80)•Only region to decline since UN created the index in ’90

– Declining to Latin American level (LDC) due to communism

– “Iron Curtain” 15º E longitude

– Initially mass increase in per capita GDP ($100s1000s)

– Communism didn’t cater to poor/agricultural societies

•Gosplan: 5 year, 3 step economic plan – 1st: heavy industry-iron, steel, machine tools, weapons

– 2nd: disperse production to the east (= development)

– 3rd: Locate manu facilities near resources, not markets

More developed regions

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Iron curtain

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EASTERN EUROPE (HDI .80)•Abandon communist economic structure

– Outdated equip, import food, impossible targets,

– Lacked basic industry needs: clothes, cars, housing

•Eastern Countries bordering W Europe– Easier transition to the market economy

More developed regions

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JAPAN (HDI .94)

•Remarkable development despite natural resources– A world leader in steel prod. yet imports all coal and

iron– 1 asset: abundance of ppl willing to work for low

wages

•Sell product overseas for cheaper than domestic co.– THEN specialize in high-valued products: electronics

•Spend 2x more on R&D than the U.S.– Rigorous edu & training programs for skilled labor

More developed regions

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SOUTH PACIFIC (HDI .87)•High HDI but not as relative in global econ.

– Smaller pop

•Comparable to most other MDC HDIs

More developed regions

Bellwork: 11/21

• What does Gender Inequality mean?

Today in Class:

• There will be a physical features map quiz of Africa.

• Next, we will head to the computer lab to look at HDI information.

11/22- Today in class

Students will work on HDI assignment- referencing cia.gov.

Human Development Index: HDIhttp://hdr.undp.org/en/statistics/hdi/

Human Development Index HDI

HDI only includes income from the formal market. Reported to the government, pay taxes.

Formal Market: Ecuador Informal Market: Ecuador

HDI does not include income from the informal market. Not reported to the government, no taxes paid.

Formal Market: Brazil Informal Market: Brazil

BELLWORK: 12/2

Students will watch TED TALK, what does the Washing Machine symbolize?

http://www.gapminder.org/videos/hans-rosling-and-the-magic-washing-machine/

MODELS of DEVELOPMENT

ROSTOW and His Model

• The work of American Walt W. Rostow• Rostow is an economic historian• Countries can be placed in one of five

categories in terms of its stage of growth

• How do countries develop?• If we can understand how development

occurs, strategies can be adopted to help countries to develop

STUDENTS Will Create a Matrix of Rostow’s Stages of Development

1. Traditional Society• Characterised by

– subsistence economy – output not traded or recorded – existence of barter – high levels of agriculture and labour intensive agriculture

2. Pre-conditions:– Development of mining industries– Increase in capital use in agriculture– Necessity of external funding– Some growth in savings and investment

3. Take off:– Increasing industrialisation– Further growth in savings and investment– Some regional growth– Number employed in agriculture declines

4. Drive to Maturity:– Growth becomes self-sustaining – wealth generation enables further

investment in value adding industry and development– Industry more diversified– Increase in levels of technology utilised

5. High mass consumption– High output levels– Mass consumption of consumer durables– High proportion of employment in service sector

Country Analysis and Comparisson

• http://www.bized.co.uk/educators/16-19/economics/development/activity/models.htm

Models of Development: Market Based

Models of DevelopmentRostow: International Trade Approach

International Trade Approach

Models of Development• Development through self-sufficiency

– Characteristics:• Pace of development = modest• Distribution of development = even• Barriers are established to protect local business

–Three most common barriers = (1) tariffs, (2) quotas, and (3) restricting the number of importers

• Two major problems with this approach:– Inefficient businesses are protected–A large bureaucracy is developed

Development through international trade

– Examples of international trade approach• The “four Asian dragons”: Singapore, Hong Kong,

Taiwan, South Korea • Petroleum-rich Arabian Peninsula statesSemi-Peripheral States

– Three major problems:• Uneven resource distribution• Increased dependence on MDCs• Market decline

International Trade Approach

Models of Economic DevelopmentWallerstein’s World System Analysis

1. Core: High IncomeHigh use of technologyHigh % of tertiary activitiesHigh levels of Education by the majority of the population OECD countries G82. Semi-Periphery: used to be peripheral statesIncreased economic developmentBRICS3. Periphery: Low IncomeLow use of technologyHigh % of primary activitiesLow levels of education by the majority of the population

Core and Periphery Model:North South Divide

BRICS: Brazil, Russia, India, ChinaSouth Africa added in 2010

G8: Top State economiesCanada, France, Germany, Italy, U.K., U.S.(Core)

Mexico recently admitted (semi-periphery)

BRICS: Semi-Peripheral States

Core-Periphery on a national scale

What is being done to increase development now? United Nations Millennium Development Goals

December 3, 2013http://www.youtube.com/watch?v=jbkSRLYSojo

Students will read article: 12/3

Fair Trade and the Food Movementhttp://freakonomics.com/2010/06/30/fair-trade-and-the-food-movement/?_r=0

Why Do LDCs Face Obstacles to Development?

• Development through self-sufficiency– Characteristics:

• Pace of development = modest• Distribution of development = even• Barriers are established to protect local business

– Three most common barriers = (1) tariffs, (2) quotas, and (3) restricting the number of importers

• Two major problems with this approach:– Inefficient businesses are protected– A large bureaucracy is developed

Why Do LDCs Face Obstacles to Development?

• Development through international trade– Rostow’s model of development– Examples of international trade approach

• The “four Asian dragons”• Petroleum-rich Arabian Peninsula states

– Three major problems:• Uneven resource distribution• Increased dependence on MDCs• Market decline

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

Triumph of International Trade Approach

Figure 9-27 Figure 9-28

Foreign Direct Investment

Figure 9-30

Why Do LDCs Face Obstacles to Development?

• Financing development– LDCs require money to fund development– Two sources of funds:

• Loans– The World Bank and the IMF– Structural adjustment programs

• Foreign direct investment from transnational corporations

Debt as a Percentage of Income

Figure 9-31

Why Do LDCs Face Obstacles to Development?

• Fair trade approach– Products are made and traded in a way that

protects workers and small businesses in LDCs– Two sets of standards

• Fair trade producer standards• Fair trade worker standards

– Producers and workers usually earn more– Consumers usually pay higher prices

DECEMBER 3, 2013: In- Class Review Day