DEVELOPMENTDEVELOPMENTANDAND

Economic geography Economic geography

RESOURCES RESOURCES

What are the kinds of What are the kinds of resources available?resources available?

Natural ResourcesNatural ResourcesRenewable resources will Renewable resources will replace themselves over replace themselves over time.time.Soil, water, and forestsSoil, water, and forests

Nonrenewable resourcesNonrenewable resources

Will not replace themselves. Will not replace themselves. Once they are used, they are Once they are used, they are gone.gone.Fossil fuels (oil, coal, natural Fossil fuels (oil, coal, natural gas), and metals (gold, iron, gas), and metals (gold, iron, copper, and bauxite)copper, and bauxite)

Human ResourcesHuman ResourcesHuman resources are man Human resources are man and his mind, and they and his mind, and they depend on:depend on:Level of educationLevel of educationIs labor skilled or unskilled?Is labor skilled or unskilled?Are entrepreneurial or Are entrepreneurial or managerial abilities needed?managerial abilities needed?

Capital ResourcesCapital Resources

Resources that can be used to Resources that can be used to make more, like money or toolsmake more, like money or tools the availability of money for the availability of money for

lendinglending the level of infrastructure, the level of infrastructure, the availability and use of tools, the availability and use of tools,

machines, and technologiesmachines, and technologies

What are the effects of unequal What are the effects of unequal distribution of resources?distribution of resources?

1. Causes countries to specialize in 1. Causes countries to specialize in the goods and services they the goods and services they produce. produce.

2. Interdependence of nations -- 2. Interdependence of nations -- they must trade with each other to they must trade with each other to acquire the goods they do not acquire the goods they do not possesspossess

3. Uneven economic development 3. Uneven economic development (rich and poor countries)(rich and poor countries)

The effects of unequal The effects of unequal distribution of resources cont.distribution of resources cont.

4. Energy producers and 4. Energy producers and consumers consumers

5. Imperialism (one country 5. Imperialism (one country dominating another)dominating another)

6. Conflicts over control of 6. Conflicts over control of resourcesresources

How is development How is development measured?measured?

Gross Domestic Product Per CapitaGross Domestic Product Per Capita aka GDP per capitaaka GDP per capita value of goods and services produced within a country within a given yearvalue of goods and services produced within a country within a given year Other similar measures include Other similar measures include

GNP (broader value), GNP (broader value), PPP (purchasing power parity) which considers what money actually buys in each countryPPP (purchasing power parity) which considers what money actually buys in each country

Usually calculated in US dollars to allow comparisons between countriesUsually calculated in US dollars to allow comparisons between countries

Two other ways of Measuring Two other ways of Measuring DevelopmentDevelopment

Gross 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. Includes things produced inside and outside a country’s territory.

Gross National Income (GNI)

Measure of the monetary worth of what is produced within a country plus income received from investments outside the country. Now also includes remittances.

** Most common measurement used today.

Issues with Measuring Issues with Measuring Economic DevelopmentEconomic Development

All measurements count the:All measurements count the: Formal EconomyFormal Economy – the legal economy – the legal economy

that governments tax and monitor.that governments tax and monitor.

All measurements do not count the:All measurements do not count the: Informal EconomyInformal Economy – the illegal or – the illegal or

uncounted economy that governments uncounted economy that governments do not tax or keep track of.do not tax or keep track of.

Measuring DevelopmentMeasuring Development

Gross Domestic Product per CapitaGross Domestic Product per CapitaHigh human development 35000

Medium human development 6000

Low human development 358

Gross Domestic ProductGross Domestic ProductHigh Human DevelopmentHigh Human Development

United United StatesStates

Canada Canada FranceFrance DenmarDenmarkk

Lichten-Lichten-stein stein

49,00049,000 41,10041,100 35,60035,600 37,60037,600 143,900143,900

Gross Domestic ProductGross Domestic ProductMedium Human Medium Human DevelopmentDevelopment

Turkey Turkey Peru Peru IndiaIndia ChinaChina KazakhstaKazakhstan n

14,70014,700 10,20010,200 3,7003,700 8,5008,500 13,20013,200

Gross Domestic ProductGross Domestic ProductLow Human DevelopmentLow Human Development

NigeriaNigeria RwandaRwanda TogoTogo MaliMali AfghanistaAfghanista

nn

2,6002,600 1,4001,400 900900 1,1001,100 1,0001,000

Other Measures of Other Measures of DevelopmentDevelopment

--Unemployment--Unemployment The number of people who (in a given The number of people who (in a given

year) were not working but were year) were not working but were available for work and had taken steps to available for work and had taken steps to seek work. seek work.

In some circumstances where In some circumstances where employment opportunities are employment opportunities are particularly limited in a country, the last particularly limited in a country, the last criteria ("had taken steps to seek work") criteria ("had taken steps to seek work") may be relaxed.may be relaxed.

Other Measures of Other Measures of DevelopmentDevelopment

Telephone Lines Telephone Lines Number of subscriber lines (business Number of subscriber lines (business

and residential) plus public and residential) plus public telephones per 100 inhabitants. telephones per 100 inhabitants.

Other Measures of Other Measures of DevelopmentDevelopment

Undernourished peopleUndernourished people The percentage of the population The percentage of the population whose food intake falls below the whose food intake falls below the minimum requirement needed to minimum requirement needed to meet dietary energy requirements on meet dietary energy requirements on a regulara regular

Other Measures of Other Measures of DevelopmentDevelopment

Televisions Televisions Number of persons per television setNumber of persons per television set

Water Resources per CapitaWater Resources per Capita Average amount of water that is Average amount of water that is available per person from rivers and available per person from rivers and groundwater each year.groundwater each year.

Differences in Differences in CommunicatioCommunications Connectivity ns Connectivity

Around the Around the WorldWorld

Dependency Ratio 2008

What does development look What does development look like?like?

Less Developed DevelopedPer capita incomes are low, and capital is

scarce.Per capita incomes are high and capital is

readily available.Wealth is unevenly distributed within

individual countries, e.g., Colombia, 2.6% of population owns 40% of the national

wealth.

Wealth is comparatively evenly distributed, e.g., Canada, 10% of

population owns 24% of national wealth.Primary industries dominate national

economies.Manufacturing and service industries

dominate national economies.High proportion of population engaged in

subsistance agriculture.Farming is commercial, efficient, and

mechanized.

What does development look What does development look like?like?

Less Developed DevelopedPopulations are rural; but cities are

growing rapidly. Populations urban, cities growing slowly.Birth and death rates are high and life

expectancy is low. There tends to be a high proportion of children.

Birth and death rates are low and life expectancy is high. High proportion of

people over 60 years old.

Inadequate or unbalanced diets resulting from a low consumption of protein; hunger and malnutrition common.

Adequate supplies of food and balanced diets; overeating sometimes a problem.

Diseases, especially infectious and parasitic diseases, common. Health care

poor.Low incidence of disease; good medical

services available.

What does development What does development look like?look like?

Less Developed DevelopedOvercrowding, poor housing, few public

services, bad sanitation--poor social conditions. Social conditions generally good.

Poor educational facilities, high levels of illiteracy--low levels of scientific and

technological development.

Education opportunities excellent, high literacy, advanced science and

technology.Women may be held in an inferior

position in society.Women are increasingly treated on equal

terms with men.

Types of Economic SystemsTypes of Economic Systems

Subsistence economiesSubsistence economies : goods and : goods and services are created for the use of the services are created for the use of the kinship group.kinship group.

Commercial economiesCommercial economies : producers or : producers or their agents freely market their goods their agents freely market their goods and services, following the law of and services, following the law of supply and demand. supply and demand.

Planned economiesPlanned economies: associated with : associated with communist societies, when communist societies, when governments controlled the economies. governments controlled the economies.

Categories of Categories of Activities/Jobs Activities/Jobs

Occupational Structure of the Occupational Structure of the Workforce: Ranges along a continuum Workforce: Ranges along a continuum of both increasing complexity of of both increasing complexity of product or service and distance from product or service and distance from the natural environment. the natural environment. PRIMARY (agriculture)PRIMARY (agriculture) SECONDARY (industry)SECONDARY (industry) TERTIARY (services)TERTIARY (services) QUATERNARY (information)QUATERNARY (information)

Occupational StructureOccupational Structure of Various Countries of Various Countries

United StatesUnited States GDP $49,000 GDP $49,000 Agriculture .7%, Industry 20.3%, Agriculture .7%, Industry 20.3%,

Services 79%Services 79%

ChinaChina GDP $8,500 GDP $8,500 Agriculture 37%, Industry 29%, Services Agriculture 37%, Industry 29%, Services

34% (2008 est.)34% (2008 est.)

Occupational StructureOccupational Structure

TanzaniaTanzania GDP $1,500 GDP $1,500 Agriculture 80%, Industry & Services Agriculture 80%, Industry & Services

20% (2002 est.)20% (2002 est.)

BrazilBrazil GDP $11,900 GDP $11,900 Agriculture 20%, Industry 14%, Services Agriculture 20%, Industry 14%, Services

66% (2003 est.)66% (2003 est.)

Primary ActivitiesPrimary Activities

DirectDirect removal of natural resources removal of natural resources from the earth: mining, forestry, from the earth: mining, forestry, and agriculture. These are most and agriculture. These are most important in the LDCs.important in the LDCs. Subsistence AgricultureSubsistence Agriculture Fishing and ForestryFishing and Forestry Mining and QuarryingMining and Quarrying

Primary ProductsPrimary ProductsThe percentage of people working in agriculture exceeds 75% in many LDC’s of Africa and Asia. In Anglo-America and Western Europe the figure is <5%

Trade in Primary ProductsTrade in Primary Products Important to Important to

Developing Developing EconomiesEconomies

Danger of Danger of Commodity Trade Commodity Trade DependenceDependence

Puerto Rico Coffee Plantation

Secondary Activities: Secondary Activities: ManufacturingManufacturing

SecondarySecondary - Processing and transforming - Processing and transforming natural resources: steel, textiles, auto natural resources: steel, textiles, auto assembly. These used to be most assembly. These used to be most important in MDCs, but are increasingly important in MDCs, but are increasingly important in the semi-periphery (Korea, important in the semi-periphery (Korea, Mexico, Brazil, Singapore)Mexico, Brazil, Singapore)

Tertiary and Beyond: Tertiary and Beyond: ServicesServices

Provision of Provision of servicesservices in exchange for in exchange for payment. Includes retailing, banking, payment. Includes retailing, banking, law, education, and government.law, education, and government.

Education, R & D, and information Education, R & D, and information technology becoming most important technology becoming most important in the in the postindustrial postindustrial core regions.core regions.

Less-developed countries often focus Less-developed countries often focus on tourism.on tourism.

Services historically were clustered into Services historically were clustered into settlements. Increasingly the most settlements. Increasingly the most important service centers are massive important service centers are massive world citiesworld cities..

Tertiary and Beyond: Tertiary and Beyond: ServicesServices

Less-developed countries often focus Less-developed countries often focus on tourism.on tourism.

Club Med, The Bahamas

Vendors, Bali