Costs of Development

Race to the Bottom?

Globalization contributes to and diminishes impact of development.

Globalization can contribute to rising levels of poverty and failing local business and environmental degradation.

Globalization can also pressure companies to recognize workers rights, prohibit forced and child labor and reduce environmental damage

Costs of Development

Opportunity Cost: Passing up an opportunity to achieve a greater benefit

Policymakers must weight the costs of development against benefits of development

Interdependence from globalization can affect places far away.

Pollution in China can have an effect on the world.

Demand for low costs increase demands for sweatshop labor in Asia

Social and Cultural Costs of Development

Loss of sense of community, pursuit of consumerism, decline in cultural identity, increase in drug and alcohol abuse.

As industries locate in societies, people adjust to conform to their requirements

More time devoted to work, equals less interaction

United Arab Emirates

Social alienation, pressure to make money and increased exposure to values of modern societies contribute to rise of social problems.

Drug abuse, alcoholism and prostitution have accompanied UAE’s rapid economic growth

Dubai 1990 Dubai Today

Destruction of the Amazon

Most cultures are durable but those closely linked to environment are threatened with extinction

Development of Amazon has ignored indigenous cultures.

Escalation of Criminal Activities

Modernization weakens social bonds that helped to reduce crime.

Urbanization, destruction of communities, individualism, alienation and consumerism cause crime rates to rise.

Rising prosperity, unequal distribution, and breakdown of traditional societies, makes developing countries vulnerable to widespread crime.

Mexico

Mexico City leading example of widespread and uncontrollable crime

Rampant Muggings, burglaries, and car thefts.94% of all violent crimes never solved or prosecuted6,200 people killed in drug wars in 2008Salary of Police Officers $200 a month, means

incentive to collaborate with criminals and accept bribes.

Child Labor

218 million children, age 5-14 are working.317.4 work outside the home part-timePressure to compete makes countries

produce at low price.Child labor, the cheapest labor of all.70% employed in agricultureWithout income from child, many families

would not survive

Child Labor by Numbers

India, Pakistan, Bangladesh, Thailand, Indonesia, Philippines: 153.5 million children employed

Africa: 80 millionLatin America and Caribbean: 17 million300,000-1 million in the US

India

100 million children work, largest number of child laborers in the world

Poverty and caste system reinforce the practice Landless, illiterate parents expect children to helpTypical rural family with two children earn less than

$1 a day.Work in dangerous conditionsMost families too poor to abandon system of child

labor.

Pakistan

Until 1999, Pakistan relied primarily on child labor for the soccer ball industry

International pressure is forcing Pakistan to eliminate child workers and employ women.

‘Social Labeling’ (no sweat label)

Bangladesh

Many children work in garment industry (70% of exports)

Women in factories earn $30 a month.Bangladesh adopted a structural adjustment

programProgram required cuts in govt. spending on

health care, education, nutrition and programs that benefit poor.

Reduced govt. expenditure, forced more families to rely on children for income.

Sweatshops

As old as industrialization Many are small businesses owned by locals

who make products for various companiesMany workers earn less than $1 a day and

work 12-14 hours a day, 6-7 days a weekWal-Mart, Gap, Reebok, Nike, Starbucks,

Walt Disney and Mattel

Economic and Political Costs

Consumerism and DevelopmentWhat’s the relationship between these two concepts? How has Tourism impacted consumerism? Negative side-effects

Fast food Alcohol abuse Smoking

Urbanization and Development

World becoming increasingly urbanized (65% by 2025)

10 of 13 most populated cities in developing countries

Urbanization increases demand for scarce resource

Shantytowns destroyed for developmentSevere traffic and air pollution problemsUnsanitary living conditions, limited access to

clean waters, untreated sewage.

Decline of Agriculture and Economic Development

Urbanization influence many farmers to leave the rural areas in search of a better life in the cities

Fewer farmers=less food

Shopping malls, airports, roads and highways, tourist facilities, harbors, hospitals, schools reduce land available for agriculture

Environmental Costs

Environmental Costs of Development Pollution, pollution, and more…pollution How bad is it in Ecuador?

Many companies are exempt from weak environmental laws and have caused widespread destruction

Polluted Water

Most water pollution caused by untreated human waste

Ganges River- crowded cities dump millions of gallons of untreated human and industrial waste into the river

Ganges believed to cleanse sins by drinking and bathing in it.

Causes and Effects of Pollution

Automobiles, factories, and coalToxic chemicals cross the Pacific and pollute

California, Oregon and Washington.Leads to respiratory disease, lung and heart

disease, premature births/deathsWHO- Mexico City’s pollution equal to

smoking 2 packs of cigarettes a day.China, India, Mexico and Brazil have

increased gas prices by 121% to reduce emissions

Deforestation

Deforestation How is deforestation linked to modernization?

Pressures from population The growth of commercial farming Cattle Ranching Desertification

Government Programs Indonesia’s Transmigration Program Trans-Amazon Highway

Do they work?

Dam Construction

Dam Construction Why would you build a dam? Success in Egypt (Aswan High Dam)? Success in China (Three Gorges Dam)?