Ch. 9 Development Part 2

Warm Up

• Which of the following regions in the United States leads the others in coal production?

• A. Appalachian Mountains• B. Gulf Coast• C. Western Pacific• D. Upper Midwest• E. Southwest Texas

Top 10 Countries HDI

• http://www.youtube.com/watch?v=H4UdNzC2vMo

Core and Periphery in World Economy

Fig. 9-25: This north polar projection of the world shows that most of the MDCs are in a core area north of 30° N latitude. The LDCs are mostly on the periphery of this map.

Core

Core

Periphery

Periphery

Where are Developed Countries?

• Per Capita GDP Map

GDP

Where are Developed Countries?

• Land Line Map

Telephones

Where are Developed Countries?

• Cell phone map

Cell Phones

Where are Developed Countries?

• Student/Teacher Map

Student:Teacher Ratio

Where are Developed Countries?

• Health Expenditure Map

Amount spent on health

Where are Developed Countries?

• Physicians Map

Doctors per Person

Where are Developed Countries?

• Caloric Intake Map

Calories per Person

Where are Developed Countries?

• Private Expenditure Map

Personal $ spent on Health

Where are Developed Countries?

• More and Less Developed Regions Map

Core

Periphery

Core

Levels of Development

• MDCs/Developed

• Newly Industrialized Countries

• LDCs/Developing

Developed vs. Developing

• http://www.youtube.com/watch?v=qb-3Ri5G2j4

Two Viewpoints of Economic Development

• Optimistic• Abundance of resources• Humans working together can

solve problems of unequal distribution

• Pessimistic• Inaccessibility of resources is

a serious challenge• Distribution ≠ demand• Investment is not allocated

equally around the world

Why are some countries less developed?

• Development is a matter of productivity• Reasons for a lack of productivity

– Lack of physical resources• Raw materials, access to trade routes, climate

– Cultural traditions• Role of women, willingness to accept new technologies, ethnic tensions

– Technology – Physical Capital– Infrastructure

• Railroads, Airports, Highways, Telephone lines, Internet, schools, electric grid, and so on…– Political Stability– Globalization

LDC’s are less productive

because they lack technology!

Warm Up

• What would be considered a basic industry for the city of Pittsburgh?

• A. automobiles• B. computer processors• C. meat packing• D. iron ore• E. steel production

RemindersTomorrow:• Ch. 9 Rdg Quiz• Ch. 9 Rdg Notes due!

Wednesday:• South Asia Map Quiz• South Asia Map due

Thursday:• FRQ

Friday:• Ch. 9 Test• Review due• Need Textbooks!

Development Through Self Sufficiency

• China and India• Benefit: Spread development across all sectors• Modest growth• Isolate businesses in LDCs from MDC competition• Limited imports, limited exports, government subsidies

Self Sufficiency Example: India

• Goal: Spread investment throughout

all sectors of economy and regions• Slow and steady pace• For many years India used barriers to isolate their

own businesses– Foreign companies had to get a liscence to import– Once they had a liscence, quanitity was limited– Heavy taxes on imports– Indian businesses discouraged from exporting, Indian

currency could not be converted.

•

Problems with Self Sufficiency

• Inefficiency• Little incentive to improve quality or price or production• Large bureaucracy• Abuse and corruption common

Development Through International Trade

• Countries identify unique assets• Concentrate on expansion of local markets into global

trade• Singapore/South Korea/Taiwan/Hong Kong-concentrated

on manufactured goods especially clothing and electronics

• Saudi Arabia-Concentrated on oil

4 dragons…used low labor costs to promote development

In recent years India has embraced the international

trade model

Rostow’s Model of Development

• 1950s proposed a 5 stage development model

• 1. Traditional Society (primary sector)

• 2. Preconditions for takeoff (elite group establishes infrastructure and invests in tech)

• 3. The takeoff (a select few industries experience rapid growth, such as textiles or food)

• 4. The drive to maturity (tech diffusues to other industries, workers gain skills)

• 5. The age of mass consumption (economy shifts from industry to consumer goods)

For Rostow, development begins when an elite group initiates new

activities

Dubai

• Explain how Dubai went through Rostow’s Model of Development:

• Traditional Society• Preconditions for Takeoff• The Takeoff• The drive to maturity• The age of mass consumption

Problems with International Trade

• Uneven resource distribution (Zambia and copper)• Market stagnation—markets only have so much room• Increased dependence on MDCs. While building takeoff

industries, LDCs have to cut back on $ for food, clothing, etc. for citizens. Then, those items must be purchased from MDCs.

World Systems Theory

• Immanuel Wallerstein• “core and periphery”• Core=more developed, use periphery’s resources

No more colonization…now MDCs get their resources from

LDCs through trade

Financing Development

• It takes money to make money• Loans from MDCs to buy infrastructure• Direct investment from transnational corporations• IMF and World Bank• Microloans• http://www.youtube.com/watch?v=UF2zhS3bvVY

Debt Map

Fair Trade

• Products are made and traded according to standards that protect workers and small businesses in LDCs

• Craft products/10,000 Villages• Producer Standards

– Worker-owned, democratic, no middlemen• Worker Standards

– Fair wages, unions, enviro and safety standards

Development and Gender

• Gender inequality exists in every country of the world, some more than others

• Gender Related Development Index (GDI)– Differences in conditions for men and women

• Gender Empowerment Measure (GEM)• -How many political/economic opportunities for women

GDI

Female vs. Male Income

Gender Inequality by the Numbers

• Highest GDI score: Norway, .96• US: per capita annual income in 2003 for

males was $46,456 and for females $29,017

• Ratio of women:men in high school in MDCs: 99:100, in LDCs 60:100

• Exception is life expectancy, but still major differences in MDCs (6 years) and LDCs (0-1 years)

Women

• One group that is underrepresented around the world is women

• For instance, despite being 51% of the total US population– There have only been 44 female senators (currently 20)– There have only been 300 female representatives– There have only been 4 female supreme court justices out of 112– And there has never been a female President of the United States

Gender Gap in Education

Life Expectancy by Gender

GEM by the Numbers

• Economic power: income and professional jobs availability to women

• Political power: managerial jobs and elected offices available to women

Political Power of Women

Words used to advertise toys for girls

Words used to advertise toys to boys

http://www.youtube.com/watch?v=eCyw3prIWhc

Remember Hans?

• http://www.youtube.com/watch?v=jbkSRLYSojo