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Economic Geography“Development”
Cultural Geography
C.J. Cox
Chapter Overview
Economic Geography World Economic Regions Continuum of Development Measurement of Economic
Development Structure of Economies
Geographer’s Perspective of World Economies
Geographers are interested in the distribution of wealth in the world today.– What are the patterns of wealth worldwide?– Why is wealth distributed in the manner
that it is?– What can be done to improve the wealth of
the poorer countries?
Economic Geographers
– explain how people in various places make a living,
– by analyzing the characteristics of, differences among, and movements between areas of production, exchange, and consumption.
Economics in Context
Of special interest economic geographers is the localization of economic activity– how has such activity has evolved
historically within specific cultural and technological contexts
– What are the particular physical and human resources and economic and political conditions that influence development
Globalization
accelerating economic, cultural and political interdependencies across national borders.
Much of the world's economic activity is now transnational in scope.
Globalization underscores virtually all contemporary geographies.
Rich & Poor
Determining Development
Old Classifications– First World
Ex: North America and Western Europe
– Second World Ex: U.S.S.R. and Eastern Bloc countries.
– Third World Ex: The underdeveloped, such as much of
Latin America and South-East Asia.
Determining Development
New Classifications– Developed and Developing economies
Or,– Industrialized and Newly Industrializing
Countries (NIC)
A Continuum of Development
Poor Countries Rich Countries
Zimbabwe USA Sweden
Developing vs. Developed
Developing– countries in the
process of developing their economies
– less diversified economies
– mostly agricultural based economies
Developed– countries with
developed economies
– more diversified economies
– mostly service, retail and technology based economies
How Is The Economic Development of a country
Measured?
GNPDemographic Signs of
DevelopmentSocial Signs of DevelopmentStructure of the Economy
Key Terms Per Capita Income: Per person income
Gross National Product: Total production of goods and services by a country within a period of a year
Gross Domestic Product: Total production of goods and services within a country during a period of a year
Range of World GNP World Average
$4920
Developed Countries $19,310
Developing Countries $1,120
Lowest GNP $80. Mozambique
Highest GNP $41,210 Luxembourg
Mozambique $80 USA
$26,980
Luxembourg $41,210
World Average $4920
Developing Average $1,120
Developed Average $19,310
GDP 1995
Single Commodity Dependent Economies
Farming - orangeOil - GreenMetals - pinks
How Is The Economic Development of a country
Measured?
GNPDemographic Signs of DevelopmentSocial Signs of DevelopmentStructure of the Economy
Demographic Signs of Development
Developing Countries
– high birth rates (5%)– high natural increase (4.6%)– high infant mortality (150+)– high fertility (7.4)– high pop under 15 (50%)– low pop over 65 (1%)– low doubling time (15 yrs.)– short life expectancy (43 yrs.)
Developed Countries
– low birth rates (1%)– low natural increase (0)– low infant mortality (.4%)– low fertility (1.1)– low pop under 15 (15%)– high pop over 65 (18%)– high doubling time (4077 yrs)– long life expectancy (80 yrs)
How Is The Economic Development of a country
Measured?
GNPDemographic Signs of DevelopmentSocial Signs of DevelopmentStructure of the Economy
Social Signs of Development Use of consumer goods - phones, TV’s,
computers Distribution of wealth & services
– health care availability number of physicians per capita
– education availability literacy
Signs of over consumption– caloric intake
How Is The Economic Development of a country
Measured?
GNPDemographic Signs of DevelopmentSocial Signs of DevelopmentStructure of the Economy
Structure of the Economy
Economic activities are divided into stages or categories of increasing complexity– Primary Sector– Secondary Sector– Tertiary Sector– Quaternary Sector
Primary
Secondary
Tertiary
Quaternary
Economic SectorsStructure of the Economy
Primary Industry - extraction of resources from the earth
farming, mining, lumber harvest, fishing
Primary Sector
The direct extraction of material from the earth. Generally, through agriculture, but also through mining, fishing and forestry.
Many developing nations still rely on the primary sector as a source of employment and export earnings.
Interesting Facts
It is estimated that as much as 75 percent of the people in India are working in agriculture.
Less than 5 percent (maybe 3) of the work force is involved in agriculture in the United States.
Rice Farming in Vietnam - primary industry
Vietnam
Costa Rica
Economic SectorsStructure of the Economy
Secondary Industry - processing and manufacturing of resources
manufacturing
Secondary Sector
The manufacturing or processing of primary products.
Associated with the Industrial Revolution.
Interesting Fact
Currently, only about 15 percent of manufacturing comes from developing countries, but this figure is rising due to policies set forth by the IMF and various multilateral agreements.
Sugar Refining Plant
Timber Processing -Humboldt
Maserati Plant - Italy
Economic SectorsStructure of the Economy
Tertiary Industry - distribution of goods and services
trucking, banking, retail store outlets, groceries
Tertiary Sector
Providing services, such as: financial, retail, government, transportation, marketing, legal, etc…
Employs most of the labor force in the developed world.
“Post-Industrial”
Hospital in Nepal
New York Stock Exchange - Trade & Finance
Mexico Trading Floor
Economic SectorsStructure of the Economy
Quaternary Industry - processing and dissemination of information
The “Information Economy”, services related to information and research.
education, research & development, cyber space
Servers/hubs - note exclusion of S. Hemisphere
Satellite Connections - note leap frogging of Africa
Chapter Overview
Economic Geography World Economic Regions Continuum of Development Measurement of Economic Development Structure of Economies
Economic Geography“Development”
Cultural Geography
C.J. Cox
Measures of Development
Consumer Goods Fertility Rate Infant Mortality Rate Literacy Economic Growth
Fertility Rate
Developing countries have higher fertility rates than developed countries.
– The total fertility rate indicates the # of children that would be born to 1,000 women passing through the child-bearing ages.
Infant Mortality Rate
Developed countries have a lower rate than the developing countries.
– Number of babies that die before reaching one year per 1,000.
Economic Theory
Classical Liberalism Neo-Liberalism Dependency Theory Globalization
Classical Liberalism
An economics and politics doctrine that says an economic system functions best when there is no interference by government. It is based on the belief that the natural economic order tends, when undisturbed by artificial stimulus or regulation, to secure the maximum well-being for the individual and therefore for the community as a whole.
“Laissez-faire”
Neo-Liberalism
Neoliberalism is a variation on the classical liberalism of the 19th Century when British and other imperialisms used the ideology of competition and "free trade" to justify their own colonialisms. Anti-colonial revolt ended the empires. Worker revolt in the 30s and anti-colonial struggles ended classical liberalism but was contained by Keynsianism: government management of the wage, the welfare state and "development." An international cycle of worker, student, peasant, woman, and pro-ecology revolt in the 60s ended Keynesianism which was replaced by neoliberalism.
Dependency Theory
Dependency Theory: A theory of colonial imperialism which informs anti-American sentiment in Latin America and elsewhere. The theory correctly asserts that capitalist imperialism distorts local economics and creates a surplus population but is often an effort to substitute foreign exploitation with that of local capitalists. A country becomes dependent upon the U.S., Germany, England, or Japan by selling cash crops or natural resources and dependent upon the same countries for food and luxury goods. The developed capitalist countries set the terms which benefit multinational corporations and banks and give "aid" subsidized by workers in capitalist countries to repair some of the distortions, especially those of hunger as cotton, coffee, cocoa, tea, beef or other foods are exported to capitalist countries
A Tricky Move?
… in 1991 the GNP was turned into the GDP - a quiet change that had very large implications. Under the old measure, the Gross National Product, the earnings of a multinational firm were attributed to the country where the firm was owned and where the profits would eventually return. Under the Gross Domestic Product, however, the profits are attributed to the country where the factory or mine is located, even though they won't stay there.
