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http://www.youtube.com/watch?v=9mgPEP8HAss In geography it refers to: Demographic change Economic growth Increased use of resources Modernization Higher levels of technology Political freedom Provide statistical “evidence” of level of development Population growth Life expectancy Health Education Urbanization Income distribution Industrialization Energy consumption Based mainly on political and economic criteria: First World Capitalist countries Free market economies Varying degree of government intervention. Second World Socialist and communist countries Government economic control . Third World Relatively poor and under-developed countries Located mainly in Asia, Africa and South America. Many have recently achieved political independence from colonial powers Being drawn into the global economy. LLEDC’s Least Economically Developed Countries Lagging behind main LEDC cluster Poorest countries in the world LEDC’s Less Economically Developed Countries Mainly agricultural employment FCC’s Former Communist Countries Struggling to convert their economies to capitalist lines RIC’s Recently Industrialized Countries Manufacturing Based Started industrialization 80-90’s OPEC’s Oil & Petroleum Exporting Companies NIC’s Newly Industrialized Countries Manufacturing based Started modern industrialization in 60’s MEDC’s More Economically Developed Countries Furthest along development pathway Highest standards of living ELDC’s Large proportion of workforce engaged in primary activities Large rural sector Rapid population growth High rate of urbanization Low standards of living NIC’s Increasing proportion of workforce in manufacturing industries Significant average annual growth in manufacturing Significant increase in GDP provided by manufacturing Increasing share of the world’s manufacturing output 3 main groups of NIC’s Asian ‘tigers’ (Hong Kong, Singapore, S Korea, Taiwan) Latin American (Brazil and Mexico) European (Portugal, Greece) Most common measure GDP= total value of goods and services produced in a country in a single year 15% of world’s population live in countries with high GDP/capita 56% of world’s pop live in areas with a low GDP/C Some countries have a GDP/C lower then US$200 (Rwanda, Ethiopia) Short-comings: Hides regional variations Fails to take into account local cost of living Does not take into account the informal economy Ignores the social and environmental cost of economic growth Used by World Bank Level of GNP adjusted to local cost of living Takes into account: Food Transport Clothing Housing Raises the position of many ELDC’s where cost of living is lower Depresses the wealth of EMDC’s where cost of living is higher The Big Mac Index is an informal way of measuring the purchasing power parity (PPP) between two currencies and provides a test of the extent to which market exchange rates result in goods costing the same in different countries. More reliable or accurate measure Use a number of indices of well-being/quality of life (qualitative measures) Literacy: crude indicator of access to education Literacy is part of Prim Ed therefore accessible Education plays a role in productivity Life Expectancy: Having life is most NB aspect of quality of life Reflects access to medical care, adequate nutrition Infant Mortality Rate Indicator Ave. of 3 measures Longevity Knowledge Standard of living PQLI (ODA) Life expectancy Literacy Infant mortality HDI (UN) Life expectancy at birth 1. 2. Adult literacy rate Combined school enrolment ratio Adjusted per capita income in PPP$ GDI Female and male life expectancy at birth 1. Female and male literacy rates Female and male combined school enrolment ratios Adjusted per capita income in PPP$, based on female and male earned income shares 2. HPI-1 Developing countries Percentage of people not expected to survive to age 40 Adult literacy rate 1. 2. 3. HPI-2 Industrialized countries Percentage of people not expected to survive to age 60 Adult functional literacy rate % of people without access to safe water % of people without access to health services % of underweight children under 5 % of people living below the income poverty line (50% of median personal disposable income) Can hide widespread inequalities Regional and racial HDI’s can be developed to show patterns 1. Under free market conditions 2. Countries exploit their resources 3. Countries base their growth on their advantages 4. Most EMDC’s 1. Governments control all resources 2. Dictate type and place of growth that they desire 3. North Korea, USSR, China 1. NIC’s progressing from using import substitution industries (ISI’s) which reduce debt, into developing export oriented industries (EOI’s) which gain valuable foreign currency 2. South Korea, Taiwan Economic Reducing unemployment Raising productivity Using resources more efficiently Social Increase standards of living Slowing migration Reducing regional inequalities Political Attempting to win votes before an election Environmental Dereliction Blight and contamination Describes how EMDC’s have changed from agricultural societies to post-industrial societies Change occurred because success in one sector produced surplus revenue Revenue invested in new industries and technologies Increased range of industries in an area The most basic model: • • • • Descriptive Crude level of analysis Omits to say how or why country developed Does not show regional variations Traditional subsistence economy Agricultural basis Little manufacturing Few international links Low population growth Pre-conditions for take-off Establishes international links Resources increasingly exploited (by colonial countries or MNC’s) Begins to develop urban system (primate city) Develops transport infrastructure Inequalities emerge between developed core and underdeveloped periphery Population increases in the Core Drive to Maturity Diversification of economy Development of service industry (health, education, welfare) Growth spreads to other sectors and regions Population growth slows and stabilizes •Take-off to Maturity (sustained growth) •Economy expands rapidly (manufacturing) •Population growth accelerates •Regional inequalities intensify (multiplier effect) •Growth is either natural (EMDC), forced (FCC), or planned (NIC) Age of high mass consumption Advanced urban-industrial systems High production/consumption of consumer goods Population growth slows considerably Anglo-centric Aspatial – does not look at variations within countries Does not take racial differences into account Over time economic forces increase regional inequalities rather than reduce them Development caused by natural advantages and regional interaction 3 stages 1. Traditional, pre-industrial stage with few regional disparities 2. Increased disparities caused by multiplier effect and backwash effects as country industrializes 3. A reduction in regional inequalities as spread effects occur Comparative advantages Natural resources Location Labor supply Market access Stimulate industrial growth Acquired advantages Improvements in infrastructure Skilled work force Reinforce area’s reputation Attracts further investment Region grows and stays ahead Multiplier effect occurs Cumulative causation Spatial interaction increases Movement to Core Skilled workers Investment New developments Peripheral areas have backwash effect Flooded by manufactured goods from core Prevents development of manufacturing in periphery Spread effects occurs When core stimulates surrounding areas to develop to meet consumer demand 1. Preindustrial economy: 2. independent local centers no hierarchy Transitional economy: Single strong center emerges Dominates colonial society as preconditions begin Growing manufacturing center Concentration of investment Core with primate city 3. Industrial economy 4. Single strong centre Strong peripheral sub-centers Increased regional inequalities between core and periphery Upward spiral in the core Downward spiral in periphery (cumulative causation) As economy expands, more balanced national development Sub-centers develop Form integrated national urban hierarchy Post-industrial economy Functionally interdependent urban system Periphery is eliminated Demographic change Economic growth Increased use of resources Modernization Higher levels of technology Political freedom