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Chapter 9: Development
The Cultural Landscape:
An Introduction to Human Geography
warm up
 What are the 3 sectors of the economy?
 Give 2 actual examples of each sector.
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Development
 The process of improving the material
conditions of people through the diffusion of
knowledge and technology
 More developed countries (MDCs)
 AKA developed countries, Core Countries
 Newly Industrialized Countries (NICs)
 AKA semi-periphery countries
 Lesser developed countries (LDCs)
 AKA emerging or developing countries, periphery
Why Does Development Vary Between Countries?
 Economic indicators of development
 The Human Development Index (HDI)
 Four factors used to assess a country’s level of
development:
 Economic = (1) gross domestic product (GDP) per
capita
 Social = (2) literacy and (3) amount of education
 Demographic = (4) life expectancy
Human Development Index
Figure 9-1
Why Does Development Vary
Among Countries?
 Economic indicators of development
 Types of jobs
 Primary sector
 Secondary sector
 Tertiary sector
 Quaternary sector (knowledge-based: IT, consultation, education, R&D)
 ?Quinary sector? (health, culture, and research)
 Productivity
 Measured by the value added per capita
 MDCs are more productive than LDCs
 Consumer goods (final product)
Economic Geography
 Money-making activities
Primary activities
 Any activity where a natural
resource (raw material) is used
directly for profit.
 Farming
 Fishing
 Mining
 Logging
Secondary activities
 When raw materials are taken to produce or
manufacture a product.
 Iron and Coal (extracted – primary) produces
Steel
 Steel produces thousands of parts for machinery
of all kinds. (automobiles)
 Cotton is harvested (primary)
 Taken to a factory and made into clothes
Tertiary (Service) activities
 Anything that provides a product or service to
the public.
 Largest sector of an MDC country today.
 Banking, education, medicine, retail or
wholesale sales, food service, military,
insurance, entertainment
Quaternary Sector
(a branch of the Tertiary Sector)
 Involves the collection, processing, and
manipulation of information.
 Engineering
 Research and development
 Information technology
 Software
 Web design
 Support
Quinary Sector
(a further branch of the Tertiary Sector, Quaternary)
 The quinary sector of the economy is defined
by some to as the highest level of intellectual
efforts.
 Health
 Culture
 Research
 Politics
Motor Vehicles Per 1,000 Persons
Figure 9-4
Why Does Development Vary
Among Countries?
 Social indicators of development
 Education and literacy
 The literacy rate
 LDCs frequently have more students per teacher
 Health and welfare
 Diet (adequate calories)
 Access to health care
Students Per Teacher, Primary School
Figure 9-6
Why Does Development Vary
Among Countries?
 Demographic indicators of development
 Life expectancy
 Babies born today in MDCs have a life expectancy in
the 70s; babies born in LDCs, in the 60s
 Other demographic indicators:
 Infant mortality
 Natural increase
 Crude birth rate
Where are MDCs and LDCs Distributed?
 More developed regions
 North America and Europe
 Other MDCs with high HDI = Russia, Japan,
Australia, and New Zealand
 Less developed regions
 Latin America = highest HDI among LDCs
 Southwest Asia, Southeast Asia, Central Asia =
similar HDI
 South Asia and sub-Saharan Africa = low levels of
development
More and Less Developed Regions
Figure 9-10
Where Does Level of Development Vary
by Gender?
 Gender-Related Development Index (GDI)
 Compares the level of women’s development with
that of both sexes
 Four measures (similar to HDI):
 Per capita female incomes as a percentage of male per capita
incomes
 Number of females enrolled in school compared to the number
of males
 Percent of literate females to literate males
 Life expectancy of females to males
Gender-Related Development Index (GDI)
Figure 9-17
Demographic Indicator of Gender
Difference: Life Expectancy
Figure 9-21
Where Does Level of Development Vary
by Gender?
 Gender Empowerment Measure (GEM)
 Compares the decision-making capabilities of men
and women in politics and economics
 Uses economic and political indicators:
 Per capita female incomes as a percentage of male per capita
incomes
 Percentage of technical and professional jobs held by women
 Percentage of administrative jobs held by women
 Percentage of women holding national office
Gender Empowerment Measure (GEM)
Figure 9-22
Economic Indicator of Empowerment:
Professionals
Figure 9-23
Progress Toward Development
Figure 9-26
Why Do LDCs Face Obstacles
to Development?
 Development through self-sufficiency
 Characteristics:
 Pace of development = modest
 Distribution of development = even
 Barriers are established to protect local business
 Three most common barriers = (1) tariffs, (2) quotas,
and (3) restricting the number of importers
 Two major problems with this approach:
 Inefficient businesses are protected
 A large bureaucracy is developed
Paths to Development
 India’s Self-Sufficiency Model
 Jawaharlal Nehru: the first Prime Minister of
independent India (1947–64)
 Nehru chose a path that focused on internal
development without outside interference.
 Backlash to years of British control.
 It was based on isolation and a system of high
tariffs and quotas.
 Discouraged exports and instead focused on
producing for internal consumption.
Paths to Development
 India’s Self-Sufficiency Model
 Government controlled prices created
monopolies and this led to inefficiency.
 A complex bureaucracy led to a reduction in
entrepreneurship.
 Since the early 1990’s open market reforms
have led to rapid increase in development.
Why Do LDCs Face Obstacles
to Development?
 Development through international trade
 China’s Market Socialist model
 Rostow’s model of development
 Examples of international trade approach
 The “four Asian dragons”
 Petroleum-rich Arabian Peninsula states
 Three major problems:
 Uneven resource distribution
 Increased dependence on MDCs
 Market decline
International Trade Approach
 China’s Market Socialist model
 Central planned economy
 Gradual approach starting with Special
Economic Zones
 Joint partnerships have led to direct foreign
investment.
 Government backed, slow privatization
Rostow - Stages of Growth
 The work of American Walt
W. Rostow
 Rostow is an economic
historian
 Countries can be placed in
one of five categories in
terms of its stage of growth:
A child in Sierra Leone making breakfast. Which
stage would a country like Sierra Leone fit in?
Rostow - Stages of Growth
Traditional Society
Characterised by
1.




Village in Lesotho. 86% of the resident workforce
in Lesotho is engaged in subsistence agriculture.
subsistence economy –
output not traded or
recorded
existence of barter
high levels of agriculture
and labour intensive
agriculture
Rostow - Stages of Growth
2. Pre-conditions:
 Development of
The use of some capital equipment can help increase
productivity and generate small surpluses which can be
traded.
mining industries
 Increase in capital use
in agriculture
 Necessity of external
funding
 Some growth in
savings and
investment
Rostow - Stages of Growth
3. Take off:
 Increasing
At this stage, industrial growth may be linked to
primary industries. The level of technology required
will be low.
industrialisation
 Further growth in
savings and
investment
 Some regional growth
 Number employed in
agriculture declines
Rostow - Stages of Growth
4. Drive to Maturity:
 Growth becomes self-
sustaining – wealth
generation enables further
investment in value adding
industry and development
 Industry more diversified
 Increase in levels of
technology utilised
As the economy matures, technology plays an
increasing role in developing high value added
products.
Rostow - Stages of Growth
5. High mass consumption
 High output levels
 Mass consumption of
consumer durables
 High proportion of
employment in service
sector
Service industry dominates the economy – banking,
insurance, finance, marketing, entertainment, leisure
and so on.
Criticisms:
 Too simplistic
 Necessity of a financial infrastructure to channel any savings that are
made into investment
 Will such investment yield growth? Not necessarily
 Need for other infrastructure – human resources (education), roads,
rail, communications networks
 Efficiency of use of investment – in palaces or productive activities?
 Rostow argued economies would learn from one another and reduce
the time taken to develop – has this happened?
Why Do LDCs Face Obstacles
to Development?
 International trade approach triumphs
 The path most commonly selected by the end of
the twentieth century
 Countries convert because evidence indicates that
international trade is the more effective path
toward development
 Example: India
 World Trade Organization
 Foreign direct investment
Triumph of International Trade
Approach
Figure 9-27
Figure 9-28
What Is the WTO?
 The World Trade Organization (WTO) is the only
global international organization dealing with
the rules of trade between nations.
 WTO agreements are negotiated and signed by
the trading nations and ratified in their
parliaments.
 The goal is to help producers of goods and
services, exporters, and importers conduct and
grow their business.
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The Goal
 To improve the
welfare of the
peoples of the
member countries.
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Past, Present, Future
The WTO came into being in 1995.
The WTO is the successor to the General
Agreement on Tariffs and Trade (GATT),
established in the wake of the Second World
War.
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The Past 50 Years: Exceptional
Growth in World Trade
 Merchandise exports
grew on average 6%
annually
 Total trade in 1997 was
14 times the level of 1950
 In 1997, 40 governments
concluded negotiations
for tariff free trade.
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The Organization Chart
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The Quad
Some of the most
difficult
negotiations have
needed an initial
breakthrough in
talks among the
four largest
members
Canada
European union
Japan
United States
Criticisms of the WTO
 The WTO undermines state sovereignty
 It undermines representative democracy
 Member nations are prevented from protecting
the environment
 Members are unable to uphold laws
guaranteeing workers’ rights
 The WTO is controlled by the larger nations
 The WTO represents the interests of large
corporations and wealthy citizens
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 Some protesters have arguments
fully worthy of consideration. They
deserve a better venue for hearing
than the streets.
 Nihilistic anarchists usually capture
the legal protest, along with,
lugubrious labor Luddites, trade
terrorists, and…
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 …the clueless
Foreign Direct Investment
Figure 9-30
Why Do LDCs Face Obstacles to
Development?
 Financing development
 LDCs require money to fund development
 Two sources of funds:
 Loans
 The World Bank and the IMF
 Structural adjustment programs
 Foreign direct investment from transnational
corporations
Debt as a Percentage of Income
Figure 9-31
Why Do LDCs Face Obstacles to
Development?
 Fair trade approach
 Products are made and traded in a way that
protects workers and small businesses in LDCs
 Two sets of standards
 Fair trade producer standards
 Fair trade worker standards
 Producers and workers usually earn more
 Consumers usually pay much higher prices
Periphery?
Core?
WALLERSTEIN’S
WORLD SYSTEM
THEORY
Core and Periphery Model
Polar Projection
The Emergence of the World System
 The world system is the result of the increasing
interdependence of cultures and ecosystems that
were once relatively isolated by distance and
boundaries.
 Of particular significance to the development of the
world system was the European Age of Discovery,
wherein the European sphere of influence began to
be exported far beyond its physical boundaries by
means of conquest and trade.
Influence of the Capitalist World Economy
 The defining attribute of capitalism is economic
orientation to the world market for profit.
 Colonial plantation systems led to monocrop
production in areas that once had diverse
subsistence bases (beginning in the seventeenth
century)…PLANTATIONS.
 Colonial commodities production was oriented
toward the European market.
Immanuel Wallerstein
 Born September 28, 1930 in New York City, is
an American sociologist, historical social
scientist, and world-systems analyst. His
bimonthly commentaries on world affairs are
syndicated.
 Wallerstein first became interested in world
affairs as a teenager in New York City, and
was particularly interested in the anti-colonial
movement in India at the time.
Wallerstein’s World System Theory
 Wallerstein has argued that international trade has led to the
creation of a capitalist world economy in which a social system
based on wealth and power differentials extends beyond
individual states.
 The world system is arranged according to influence: core (most
dominant), to semi-periphery, to periphery (least dominant).
 The core consists of the strongest and most powerful nations in which
technologically advanced, capital-intensive products are produced and
exported to the semi-periphery and the periphery.
 The semi-periphery consists of industrialized “Third World” nations that
lack the power and economic dominance of the core nations (Brazil is a
semi-periphery nation).
 The periphery consists of nations whose economic activities are less
mechanized and are primarily concerned with exporting raw materials
and agricultural goods to the core and semi-periphery.
Wallerstein’s World Systems Questions
FRONT ROW:
 What was the New European Division of Labor that
emerged in the late 15th and early 16th century.
SECOND ROW:
 What was the historical relationship between the Core
and the Periphery?
THIRD ROW:
 How are some regions considered “Semi-Periphery” by
Wallerstein and what role did they play?
World Systems theory
 Dependency theory is a body of social science theories
predicated on the notion that resources flow from a "periphery" of
poor and underdeveloped states to a "core" of wealthy states,
enriching the latter at the expense of the former.
 It is a central contention of dependency theory that poor states
are impoverished and rich ones enriched by the way poor states
are integrated into the "world system."
 Dependency theorists like Andre Gunder Frank, were criticised by
later Marxists because it only describes the relationship between
the core and periphery as a two tier model and doesn’t explain
fully.
 Wallerstein refined Frank’s dependency theory in his World
Systems Theory
Four aspects of Wallerstein’s World
Systems Theory
1. Developing countries are not exploited by
individual countries but by the whole
capitalist, profit-seeking system in a
Modern World System. The MWS is a
unified system of capitalism
2. Three zones in the MWS
i. The core/developed nations – these control
world trade and monopolize manufactured
goods
ii. The semi-peripheral zone e.g. Brazil, South
Africa, India, have urban areas like the core but
large areas of rural poverty like the periphery
iii. The peripheral countries e.g.. Most of Africa
– they provide primary products for both the
semi periphery and the core
3 Wallerstein’s model is dynamic (This allows for
movement and change).
Countries are ‘socially mobile’ they can move
in from the periphery into the semi periphery
(ex. Asian tigers) or out from the core to the
semi periphery (Russia, sometimes...)
4 While Wallerstein refines Frank’ theory there
are still similarities

Both show how surplus value created in the
periphery is appropriated by the semi
periphery and especially the core

Both see the origins of exploitation of some
countries by others to have originated in
slavery, colonialism and neo-colonialism
Modern World System of capitalism is
profit seeking
 The pursuit of profit
by capitalism results
in exploitation
between classes
 Commodification –
everything is turned
into a commodity to
be bought and sold
Wallerstein’s World Systems Questions
 FOURTH ROW:
 What was
1 aspect of Wallerstein’s Stages 1 and
2 of Growth that would help a state grow?
1
 What was aspect of Wallerstein’s Stages 3 and
4 of Growth that would help a state grow?
Modern World System of capitalism is
profit seeking
 De-skilling of labor
 Proletarianization occurs
(ie. The nature of call centers?)
 Wallerstein argues that this
process also occurs between
nations
Karl Marx
Evaluation of World Systems Theory
Weaknesses
I.
Both Frank and
Wallerstein are
economically
deterministic
II.
Wallerstein does not
say how capitalism
can be overcome as
Marx said it would
Evaluation of World Systems Theory
Weaknesses
III. Wallerstein does not
look at internal factors
(ie. mismanagement
and corruption in the
LDC’s)
IV. Methodology is too
vague and unscientific,
‘core’ etc cannot be
clearly operational zed
Evaluation of World Systems Theory
Strengths
1
Wallerstein was one
of the first to
recognise
‘globalisation’ of the
world and the
international division
of labour as the basis
of global inequality
Evaluation of World Systems Theory
Strengths
2
Globalisation theorists also
show how dependency is not a
one way process, there is
inter-dependency between
the developing and western
world.
(E.g. economic crisis caused
by debt can ripple out and
affect core nations –
unemployment and
destabilisation of western
currencies)