Download Ch. 9 Development Part 2

Ch. 9 Development Part 2
Warm Up
• Which of the following regions in the United States leads
the others in coal production?
• A. Appalachian Mountains
• B. Gulf Coast
• C. Western Pacific
• D. Upper Midwest
• E. Southwest Texas
Top 10 Countries HDI
• http://www.youtube.com/watch?v=H4UdNzC2vMo
Core and Periphery in World Economy
Periphery
Core
Core
Fig. 9-25: This north polar projection of the world shows that most of the MDCs are
in a core area north of 30° N latitude. The LDCs are mostly on the
Periphery
periphery of this map.
Where are Developed Countries?
• Per Capita GDP Map
GDP
Where are Developed Countries?
• Land Line Map
Telephones
Where are Developed Countries?
• Cell phone map
Cell Phones
Where are Developed Countries?
• Student/Teacher Map
Student:Teacher
Ratio
Where are Developed Countries?
• Health Expenditure Map
Amount spent
on health
Where are Developed Countries?
• Physicians Map
Doctors per
Person
Where are Developed Countries?
• Caloric Intake Map
Calories per
Person
Where are Developed Countries?
• Private Expenditure Map
Personal $ spent
on Health
Where
are
Developed
Countries?
Core
• More and Less Developed Regions Map
Periphery
Core
Levels of Development
• MDCs/Developed
• Newly Industrialized Countries
• LDCs/Developing
Developed vs. Developing
• http://www.youtube.com/watch?v=qb-3Ri5G2j4
Two Viewpoints of Economic Development
• Optimistic
• Abundance of resources
• Humans working together can
solve problems of unequal
distribution
• Pessimistic
• Inaccessibility of resources is
a serious challenge
• Distribution ≠ demand
• Investment is not allocated
equally around the world
Why are some countries less developed?
• Development is a matter of productivity
• Reasons for a lack of productivity
– Lack of physical resources
• Raw materials, access to trade routes, climate
– Cultural traditions
LDC’s are less
productive
because they lack
technology!
• Role of women, willingness to accept new technologies, ethnic tensions
– Technology – Physical Capital
– Infrastructure
• Railroads, Airports, Highways, Telephone lines, Internet, schools, electric grid, and so on…
– Political Stability
– Globalization
Warm Up
• What would be considered a basic industry for the city of
Pittsburgh?
• A. automobiles
• B. computer processors
• C. meat packing
• D. iron ore
• E. steel production
Reminders
Tomorrow:
• Ch. 9 Rdg Quiz
• Ch. 9 Rdg Notes due!
Wednesday:
• South Asia Map Quiz
• South Asia Map due
Thursday:
• FRQ
Friday:
• Ch. 9 Test
• Review due
Development Through Self Sufficiency
•
•
•
•
•
China and India
Benefit: Spread development across all sectors
Modest growth
Isolate businesses in LDCs from MDC competition
Limited imports, limited exports, government subsidies
Self Sufficiency Example: India
• Goal: Spread investment throughout
all sectors of economy and regions
• Slow and steady pace
• For many years India used barriers to isolate their
own businesses
–
–
–
–
•
Foreign companies had to get a liscence to import
Once they had a liscence, quanitity was limited
Heavy taxes on imports
Indian businesses discouraged from exporting, Indian
currency could not be converted.
Problems with Self Sufficiency
•
•
•
•
Inefficiency
Little incentive to improve quality or price or production
Large bureaucracy
Abuse and corruption common
Development Through International Trade
• Countries identify unique assets
• Concentrate on expansion of local markets into global
trade
• Singapore/South Korea/Taiwan/Hong Kong-concentrated
4
on manufactured goods especially clothing and
dragons…used
electronics
low labor costs
to promote
development
• Saudi Arabia-Concentrated on oil
In recent years India has
embraced the international
trade model
Rostow’s Model of Development
• 1950s proposed a 5 stage development
model
For Rostow,
• 1. Traditional Society (primary sector)
development
begins when
• 2. Preconditions for takeoff (elite group establishes
an elite group
infrastructure and invests in tech)
initiates new
activities
• 3. The takeoff (a select few industries experience rapid
growth, such as textiles or food)
• 4. The drive to maturity (tech diffusues to other industries,
workers gain skills)
• 5. The age of mass consumption (economy shifts
from industry to consumer goods)
Dubai
• Explain how Dubai went through Rostow’s Model of
Development:
• Traditional Society
• Preconditions for Takeoff
• The Takeoff
• The drive to maturity
• The age of mass consumption
Problems with International Trade
• Uneven resource distribution (Zambia and copper)
• Market stagnation—markets only have so much room
• Increased dependence on MDCs. While building takeoff
industries, LDCs have to cut back on $ for food, clothing,
etc. for citizens. Then, those items must be purchased
from MDCs.
World Systems Theory
• Immanuel Wallerstein
• “core and periphery”
• Core=more developed, use periphery’s resources
No more colonization…now
MDCs get their resources from
LDCs through trade
Financing Development
•
•
•
•
•
•
It takes money to make money
Loans from MDCs to buy infrastructure
Direct investment from transnational corporations
IMF and World Bank
Microloans
http://www.youtube.com/watch?v=UF2zhS3bvVY
Debt Map
Fair Trade
• Products are made and traded according
to standards that protect workers and
small businesses in LDCs
• Craft products/10,000 Villages
• Producer Standards
– Worker-owned, democratic, no middlemen
• Worker Standards
– Fair wages, unions, enviro and safety
standards
Development and Gender
• Gender inequality exists in every country of the world,
some more than others
• Gender Related Development Index (GDI)
– Differences in conditions for men and women
• Gender Empowerment Measure (GEM)
• -How many political/economic opportunities for women
GDI
Female vs. Male Income
Gender Inequality by the Numbers
• Highest GDI score: Norway, .96
• US: per capita annual income in 2003 for
males was $46,456 and for females
$29,017
• Ratio of women:men in high school in
MDCs: 99:100, in LDCs 60:100
• Exception is life expectancy, but still major
differences in MDCs (6 years) and LDCs
(0-1 years)
Women
• One group that is underrepresented around the world is
women
• For instance, despite being 51% of the total US population
– There have only been 44 female senators (currently 20)
– There have only been 300 female representatives
– There have only been 4 female supreme court justices out of 112
– And there has never been a female President of the United States
Gender Gap in Education
Life Expectancy by Gender
GEM by the Numbers
• Economic power: income and professional jobs
availability to women
• Political power: managerial jobs and elected offices
available to women
Political Power of Women
Words used to advertise toys for girls
Words used to advertise toys to boys
http://www.youtube.com/watch?v
=eCyw3prIWhc
Remember Hans?
• http://www.youtube.com/watch?v=jbkSRLYSojo