Download Economic Development

Economic Development & Types
of Industries
Unit 7: Economic Geography
Lesson 1
Main Ideas of this Unit
• What parts of the world perform different
economic tasks in the modern global
economy, and why?
• Who benefits the most from a globalized
economy, and why?
• Today, we’re just going to cover some basic
vocabulary.
Economic Development
• Process
through
which a
country
improves its
economy
– Can involve
diffusion of
new technology
How can I tell how developed a state
is?
• Look at economic and demographic indicators:
• Economic indicators:
– GDP per capita
– % of people working in different types of jobs
• Social/demographic indicators include:
– Infant mortality rate
– Level of education
– Life expectancy
– Literacy rates
•
GDP
(gross
domestic
product)
Value of total
amount of
goods and
services
produced in
a country in a
year
– good Physical
product
created for
people
– service - Work
or labor
created for
people
per capita GDP / per capita income
• The average income
of the people in a
country
• GDP divided by
population
• A better measure of
a country’s standard
of living than GDP
(think about how
GDP is misleading for
China)
Annual GDP per capita, 2005
Fig. 9-2: Annual gross domestic product (GDP) per capita averages over $20,000 in most
developed countries but under $5000 in most less developed countries.
Human Development Index
• Another way to analyze a
country’s level of
development.
• Combination of life
expectancy, education, and
income
• Every country is given a score
from 0 to 1
• The closer to 1, the richer the
country
HDI by province, 2014
Review!
• Based on old country quizzes, you know what region of the
world Uruguay is, so…what stage do you think it’s in?
• Based on old country quizzes, you know what region
Denmark is in, so…what stage is Denmark in?
Levels of Production in Countries
• 5 Levels: Most countries have all of these
levels, but in differing amounts
• Different levels of society are involved in
different types of production
Primary Production
• Involve taking natural
resources out of the
ground
• Examples: Oil
extraction, agriculture
fisheries, forestry
• Most basic level of
production
Secondary Production
• Taking natural resources
and turning them into
finished products.
• Become more common as
a society industrializes
• Examples: Clothes
manufacturing, turning oil
into gasoline, making
plastics
Tertiary Production
• Actually
selling goods
• Examples:
Salesmen,
shipping
industries,
education
Quartiary Industry
• Business services
• Become more common
as an economy advances
• Examples: Bankers,
advertising, insurance
• Tend to be high paying
jobs
Quinary Sector/Production
• Highest paid, intellectual
industries
• Weird--Also include luxury
goods like tourism and
recreation
• Most common in highly
developed states
(countries)
• Examples: Research, health
care, government jobs
– Silicon Valley!
% of Workers in each Sector
MDCs vs. LDCs
Review Questions
• For each of the following, tell me which level of
primary-quinary industries is represented.
• I work for an investment banking company on
Wall Street in New York City.
• I have a company that develops technology for
NASA in Houston.
• I have a company that picks bananas in
Colombia.
• I have a company that is trying to cure cancer
in the Medical Center in Houston.
• I have a company that makes posters for new
movies in Los Angeles.
• I have a company that makes parts of iPhones
in China.
• I have a company that refines and makes
gasoline from oil in Saudi Arabia.
• This is a measure of a country’s development.
It includes per capita GDP, level of education,
and life expectancy.
• Europe countries joining together have caused some
changes when they decided to be involved with the
European Union. Changes include the countries giving
up a little bit of their sovereignty, most countries
changing their currency to Euros, and not needing a
passport to travel between countries which can ease
up on trade and unify the continent with common
currency. An example would be that you can easily
travel between France and Spain without a passport
and do not need to change currency. This is an
example of how the supranational organization
changed the continent.
• Supernationalism can help you economically. An
example would be the European Union regulating its
borders. This will make easy to transport resources
within the European Union. Another way it can help
you is be a supernation creating their own currency. It
will make things easier to export money or to buy
resources. An example would be the European Union,
because they have their own currency, which are called
“euros. Countries also have to give up sovereignty
when joining a supernation. For example, when
European countries join the E.U., they have to give up
part of their sovereignty. Giving up sovereignty will
help a country develop because they are being helped
by the EU.
World Systems Theory (Wallerstein,
Core-periphery model)
Since colonialism, relations between countries have been
about countries exploiting less powerful countries. Periphery
countries will always be exploited by core countries.
Periphery
Core
Production that involve higher levels of
education, higher salaries, and
more technology
* Generate more wealth in the world
economy
Production that involve lower levels of
education, lower salaries, and less
technology
* Generate less wealth in the world
economy
Semi-periphery
Places where core and periphery
processes are both occurring.
Places that are exploited by the
core but then exploit the
periphery.
Spatial Organization of the World Economy
Core periphery on different scales
• What would core-periphery look like on the
national scale?
• Local scale?
National Scale
• Focus on regions of
a country
• Core—Service
based, most
affluent regions
• Periphery—More
agrarian, less
advanced/
educated regions
Local scale
• Local scale—
Large zoom
on an area
• Cities—core
region
• Rural areas
around
cities—
periphery
areas
Long-term Trends in Per Capita GDP
Millenium Development Goals
• Eight goals established by the United Nations to
reduce the gap in development between core
and peripheral countries.
Go online. Under economic
geography, click on lesson 2, “The
Dark Side of Valentine’s Day.”
• Pick up a whiteboard and paper towel on the
way in and take out a sheet of paper for some
notes.
• We’re going to take a lot today…
• Put your Millennium Development Goal
homework on your desk.
UN Sustainable Development Goals
On the blank map…
• Circle and label the 7 continents.
• Put a star next to the ONLY continent that is
also a country.
• Circle and label a part of the world that would
be on the economic periphery.
• Circle and label a part of the world that would
be on the economic core.
• Circle the part of the world that has
membership in the European Union.
• Circle and label India and China.
• These are goals developed to help periphery
countries improve their HDI.
• These are countries that create the most
wealth in the global economy.
• This theory claims that the world can be
explained by rich countries exploiting poor
countries.
• These are countries that are usually exploited
by developed countries, but also exploit
developing countries themselves.