Download Then divide by the total population of each country to get per capita

How Do You Define and Measure
Development?
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,
both inside and outside
a country’s territory
Gross Domestic Product
(GDP)-Measure of the
total value of the
officially recorded goods
and services produced
with a country by the
citizens and
corporations in a given
year
Gross National Income
(GNI)-Most common
measurement used
today. Measure of the
monetary worth of what
is produced within a
country plus income
received from
investments outside the
country
Then divide by the total population of each country to get per capita,
“by head” to get an average dollar amount.
Issues with Measuring
Economic Development
• Formal economy, think forms, applications
– The legal economy that governments tax and
monitor
– Counted in all measures of economy
• Informal economy, “Black Market” or
“Underground”, usually cash based
– The illegal or uncounted economy that
governments do not tax or monitor; bootleg
DVD’s & pirated software & Sr. Helote.
– Not included in measures of economy
Other Ways….
• Occupational structure of the labor force
(employment in sectors of the economy;
Primary/Agriculture, Secondary/Manufacturing,
Tertiary/Services).
• Productivity per worker (production divided by
total labor force=iPods per worker)
• Transportation and communications facilities per
person (per capita index of transportation and
communications per person)
• Dependency ratio (dependents, young and old,
that each 100 workers must support)
Dependency Ratio, 2007
A measure of the number of people under the age of 15 and
over the age of 65 who depend on each working-age adult
Development Models
• Implication or assumption of
– “Progress”=technology & more stuff
– Similar path or process in all countries
• Walt Rostow’s Modernization model
– Traditional-agriculture, rigid society
– Preconditions of takeoff-why don’t we try
something else like paving roads?
– Takeoff-urbanization and industrialization
– Drive to maturity-few left in agriculture
– High mass consumption-Core, Stage late 3, 4
How Does Geographical Situation
Affect Development?
• Importance of context: What happens at state, local,
global scale
• Colonialism
– Diffusion of idea of the state
– Dependence of colonies on rulers
– Wealth to ruling countries
• Neo-colonialism: Continuation of economic
dependency despite political independence, think
Libya selling most of its oil to Italy its former colonizer
• Structuralist theory: Difficult-to-change, large-scale
economic arrangements
Dependency Theory
• Development possibilities limited by
– Political and economic relations between regions
and countries
– Dependency of former colonies on former ruling
countries for loans, markets, migration, etc.
– Reinforcement of dependency despite political
independence
• Dollarization: Replacing local currency with currency
of a wealthy country USD in El Salvador and Vietnam
• Little hope for development in countries dominated by
wealthy powers
World-Systems Theory:
Three-Tier Structure
Core =USA
Periphery =El Salvador
Processes that incorporate higher
levels of education, higher
salaries, and more technology
Generate more wealth in the world
economy
Processes that incorporate lower
levels of education, lower
salaries, and less technology
Generate less wealth in the world
economy
Semi-periphery =Mexico
Places where core and periphery
processes are both occurring
Places that are exploited by the core
but then exploit the periphery
Serves as a buffer between core and
periphery
What Are the Barriers to and the
Costs of Development?
Millennium Development Goals
1. Eliminate extreme poverty and hunger
2. Achieve universal primary education
3. Promote gender equality and empower women
4. Reduce child mortality
5. Improve maternal health
6. Combat HIV/AIDS, malaria, and other diseases
7. Ensure environmental sustainability
8. Develop a global partnership for development
Human Development Index includes GDP per
capita, literacy, life expectancy
Barriers to Development
• Social conditions
• Foreign debt and structural adjustment
loans from World Bank, IMF, commercial
banks and states/countries
• Political instability-not much development
going on in the Middle East right now..
• Widespread disease (e.g., malaria)-AIDS in
sub-Saharan Africa,
Costs of Economic Development
• Industrialization
– Air and surface water pollution as old tech
cheaper and more polluting
– Export Processing Zones (EPZs) tax/duty free!
– Maquiladoras on the border of US & Mexico
– Special economic zones (SEZs): Shenzhen!
– Locations geared to export markets: coastal
areas can be more ecologically sensitive, but
access to world market needed. Remember S.
Sudan
Costs of Development
• Agriculture
– Pesticides: DDT
– Desertification: desert keep growing like cities
– Production for export rather than local markets
can lead to states not being able to feed itself
• Tourism
– Pollution: golf courses need pesticides,
herbicides, fertilizers; rain forest becomes hotel
– Narrow benefits, most jobs un- or low skilled
and low paying
– Damage to local cultures
How Do Political and Economic
Institutions Influence Uneven
Development Within States?
Get involved in world markets
Price commodities
Affect whether core processes produce wealth
Shape laws to affect production
Enter international organizations that affect
trade
• Focus foreign investment in certain places
• Support large-scale projects
•
•
•
•
•
Islands of Development
• Government islands: Capital cities such as
Brasilia, Washington DC, Abuja
• Corporate islands: Disney World, tech
campuses such Microsoft, Infosys
• Non-governmental organizations (NGOs)
– Private, usually non-profit charity
organizations seeking to fix imbalance
– Microcredit programs: mini loans to
individuals for small cottage businesses