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Transcript
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.
© 2011 Pearson Education, Inc.
Economic Geography
 Money-making activities
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)
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 where major world decisions are made.
 Health
 Culture
 Research
 Politics
Key Issues
Why does development vary among countries?
Why does development vary by gender?
Why is energy important for development?
Why do countries face obstacles to
development?
© 2011 Pearson Education, Inc.
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, “1st world”
 Newly Industrialized Countries (NICs)
 AKA semi-periphery countries
 Lesser developed countries (LDCs)
 AKA emerging or developing countries, periphery,
“3rd world”
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
Why Does Development Vary Between Countries?
 United Nations (UN) developed a metric to measure
the level of development of every country called the
Human Development Index (HDI).
 It is based on three factors:
1. Decent standard of living
2. Long and healthy life
3. Access to knowledge
 Countries group into 4 classes
 Level of development ranging from developed (Very High)
to developing (Low).
Human Development Index
© 2011 Pearson Education, Inc.
What is “human development”?
© 2011 Pearson Education, Inc.
Why Does Development Vary among
Countries?
 A Decent Standard of Living
 UN measures standard of living based on two functions:
1. Gross national income (GNI)
 Value of the output of goods and services produced in a country
annually, including money that leaves and enters the country.
 Gross domestic product (GDP) is similar except it doesn’t account for
money entering and leaving the country.
 Per capita GNI measures average (mean) wealth, not its
distribution among citizens.
2. Purchasing power parity (PPP)
 Cost of living adjustment made to the GNI.
© 2011 Pearson Education, Inc.
GNI PPP per capita
© 2011 Pearson Education, Inc.
Why Does Development Vary among
Countries?
 A Long and Healthy Life
 UN considers good health to be an important measure of
development:
 Main health indicator contribution to the HDI is life
expectancy at birth.
 Average life expectancies of a baby
 Global average: 70 years
 Developed country: 80 years
 Developing country: 68 years
© 2011 Pearson Education, Inc.
© 2011 Pearson Education, Inc.
Why Does Development Vary among
Countries?
 Access to Knowledge
 UN considers years of schooling to be the most critical
measure of the ability of an individual to gain access to
knowledge needed for development.
 Quantity of Schooling
 Average Years of schooling
 Global: 7 years
 Developing: 6 years
 Developed: 11 years
 Expected years of schooling
 Developed: 16 years
 Developing: 11 years
© 2011 Pearson Education, Inc.
Mean years of schooling
© 2011 Pearson Education, Inc.
Expected years of schooling
© 2011 Pearson Education, Inc.
Why Does Development Vary among
Countries?
 Access to Knowledge cont’d:
 Quality of Schooling
 Pupil/teacher ratio
 Global: 24 (primary school)
 Developing: 26 (primary school)
 Developed: 14 (primary school)
 Literacy rate
 Developed: >99%
 Developing: 70-90%
© 2011 Pearson Education, Inc.
Pupil/teacher ratio
© 2011 Pearson Education, Inc.
Percent literate
© 2011 Pearson Education, Inc.
Formula for HDI
© 2011 Pearson Education, Inc.
Formula for HDI
© 2011 Pearson Education, Inc.
HAPPY
WOMEN’S
HISTORY
MONTH
© 2011 Pearson Education, Inc.
Why Does Development Vary by Gender?
 Gender Inequality Measures
 UN created the Gender Inequality Index (GII) that is based on
multiple metrics.
 Empowerment
 Defined: Ability of women to achieve improvements in status.
 Percentage of seats held by women in the national legislature.
 Percentage of women who have completed high school.
 Labor Force
 Female labor force participation rate defined as percentage of women holding
full-time jobs outside the home.
 Highest in developed countries.
 Reproductive Health
 Maternal mortality ratio
 Adolescent fertility rate
© 2011 Pearson Education, Inc.
Gender Equality?
 https://youtu.be/Tq5
OQafDVxc
© 2011 Pearson Education, Inc.
Let the Wild Rumpus of
MĀĀĀĀĀĀĀĀĀĀPS Begin!
© 2011 Pearson Education, Inc.
Gender Inequality Index
© 2011 Pearson Education, Inc.
Percent seats in legislature
held by women
© 2011 Pearson Education, Inc.
Ratio of female to male
rates of secondary education
© 2011 Pearson Education, Inc.
Ratio of female to male
labor force participation
© 2011 Pearson Education, Inc.
Deaths of women per 100,000
live births
© 2011 Pearson Education, Inc.
Adolescent fertility rate
per 1,000
© 2011 Pearson Education, Inc.
Gender Inequality Index
improvement
© 2011 Pearson Education, Inc.
Why Does Development Vary by
Gender?
 Gender Inequality Trends
 UN asserts gender inequality has declined in nearly every
country since the 1990s.
 Greatest improvements in Southwest Asia and North Africa.
 U.S. is one of few developed countries where the GII has
increased.
 Reproductive rights much lower in U.S. compared to other
very high HDI countries.
 Percentage of women in the national legislature is relatively
lower than other high HDI countries.
© 2011 Pearson Education, Inc.
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 1980/90’s free market reforms
have led to rapid increase in development.
Triumph of International Trade
Approach
Figure 9-27
Figure 9-28
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

https://mediaplayer.pearsoncmg.com/assets/_embed.true/yfFWbZ1RGJmHyvCe_fvmuV5ZfKnx1ziX
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
WORLD TRADE AS A PERCENTAGE OF INCOME Trade as a percentage
of GDP increased rapidly in developing countries, beginning in the 1990s.
The severe recession that began in 2008 caused a sharp decline in trade.
© 2011 Pearson Education, Inc.
Why Do Countries Face Obstacles
to Development?
 Financing Development
 Finance comes from two primary sources:
1. Direct investment by transnational corporations
2. Loans from banks and international organizations
 Foreign Direct Investment (FDI)
 Defined: Investment made by a foreign company in the
economy of another country.
 FDI grew from $130 billion in 1990s to $1.5 trillion in 2000
and 2010.


In 2010, only 2/5 went from developed to developing, the
rest went developed to another developed country.
Major source of FDI are transnational corporations
© 2011 Pearson Education, Inc.
Foreign Direct Investment
Figure 9-30
Why Do Countries Face Obstacles
to Development?
 Financing Development
 Loans
 Two major lenders to developing countries:
1. World Bank
 Includes the International Bank for Reconstruction and
Development (IBRD) and International Development
Association (IDA).
 IBRD provides loans to countries to reform public
administration and legal institutions, develop and
strengthen financial institutions, and implement
transportation and social service projects.
 IDA provides support to countries considered too risky to
receive loans from IBRD.
© 2011 Pearson Education, Inc.
Why Do Countries Face Obstacles
to Development?
 Financing Development
 Loans
 Two major lenders to developing countries:
2. International Monetary Fund (IMF)
 IMF provides loans to countries experiencing balance-ofpayments problems that threaten expansion of
international trade.
 IMF assistance designed to help a country rebuild
international reserves, stabilize currency exchange rates,
and pay for imports without the imposition of harsh
trade restrictions or capital controls that could hamper
the growth of world trade.
© 2011 Pearson Education, Inc.
Why Do Countries Face Obstacles
to Development?
 Financing Challenges in Developing and Developed
Countries
 Developing Countries
 IMF, World Bank, and developed countries fear that granting,
canceling, or refinancing debts without strings attached will
perpetuate bad habits in developing countries.
 Developing countries required to prepare a Policy Framework
Paper outlining a structural adjust program, which includes
economic goals, strategies for achieving the objectives, and
external financing requirements.
© 2011 Pearson Education, Inc.
Why Do Countries Face Obstacles
to Development?
 Financing Challenges in Developing and Developed
Countries
 Developed Countries
 Heart of the global economic crisis in developed countries was
the poor condition of many banks and other financial
institutions.
 Bad loans were especially widespread in housing, which led to
the housing bubble- a rapid increase in the value of houses
following by a sharp decline in their value.
 Bubble burst because of relaxation of long-standing restrictions on the
ability of individuals to purchase houses and higher-income people took
advantage of low-interest loans to buy additional houses.
© 2011 Pearson Education, Inc.
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?
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.
© 2011 Pearson Education, Inc.
The Goal
 To improve the
welfare of the
peoples of the
member countries.
© 2011 Pearson Education, Inc.
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.
© 2011 Pearson Education, Inc.
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.
© 2011 Pearson Education, Inc.
The Organization Chart
© 2011 Pearson Education, Inc.
The Quad
Some of the most
difficult
negotiations have
needed an initial
breakthrough in
talks among the
four largest
members
United States
Canada
European union
Japan
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
© 2011 Pearson Education, Inc.
 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…
© 2011 Pearson Education, Inc.
 …the clueless
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?
FOURTH/FIFTH ROW:
 What are some specific regions that are still affected by
the concepts in the World Systems Theory? How?
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)
HDI DAY

Look over the Human Development Index and its components list from NorwAy
to (Not Norway) hand out. Pick ONE country from each of the FOUR levels (VERY
HIGH HUMAN DEVELOPMENT, HIGH, MEDIUM, LOW). Go to www.cia.gov and
click on the World Factbook link in the middle under “Library/Publications”. You
will do your research on the CIA website for this project.

For each of the states you have chosen you will go to that country’s page and click
on and read through the PEOPLE and the ECONOMICS sections.

From that for each country you will give a brief 5-8 sentence explanation how the
country is in their particular level of development based on your research in the
PEOPLE and the ECONOMICS sections. Quote particular statistics and facts from
the CIA World Factbook to make your points. Use specific human geography
terms and vocabulary where applicable.

This should be 1-2 pages typed. It can be saved in your student home folder or
printed out and handed in to the classroom folder.

DUE DATE:
FRIDAY 3/13/15
Why is Energy Important for
Development?
 Energy Demand and Supply
 Supply is the quantity of something that producers have
available for sale.
 Demand is the quantity that consumers are willing and
able to buy.
 5/6 of the world’s energy needs are supplied by fossil
fuels, which is an energy source formed from the
residue of plants and animals buried millions of years
ago.
 Coal (27.9%)
 Petroleum (33.2%)
 Natural Gas (22.1%)
Why is Energy Important for
Development?
 Energy Demand and Supply
 Demand For Energy
 Although fewer in number, developed countries consume about
½ of the world’s energy.
 Percent of World Energy Consumed
 China: 20.4%
 U.S.: 18.3%
 Europe: 15.1%
 Per capita consumption of energy is greatest in North America.
 Contains 1/20 of world’s population and consumes ¼ of the world’s energy.
 Per capita consumption of energy is nearly three times greater
in developed countries than in developing countries.
ENERGY DEMAND PER CAPITA
The highest per capita consumption is in North
America, and the lowest is in sub-Saharan Africa.
Why is Energy Important for
Development?
 Energy Demand and Supply
 Energy Supply
 Earth’s energy resources are not distributed evenly.
 Global Coal Distribution
 Today’s main reserves of coal are located in the mid-latitude countries.
 China and the U.S. supply nearly 1/2 and ¼, respectively, of the world’s coal.
 Global Petroleum Distribution
 Today’s main reserves are located on the seafloor and in areas once under
water millions of years ago.
 Russia and Saudi Arabia together supply ¼ of the world’s petroleum supply.
 U.S. supplies ¼ of the global supply
 Remaining ½ of world supply of petroleum is supplied by developing
countries (primarily in S.W. and Central Asia)
COAL PRODUCTION
China is the world’s leading producer of
coal, followed by the United states.
PETROLEUM PRODUCTION
Russia, Saudi Arabia, and the United States
are the leading producers of petroleum.
Why is Energy Important for
Development?
 Energy Demand and Supply
 Energy Supply
 Global Natural Gas Distribution
 1/3 of natural gas production is supplied by Russia and S.W. Asia
 1/3 by developing regions
 1/3 by developed countries (primarily the U.S.)
NATURAL GAS PRODUCTION
The United States and Russia are the
leading producers of natural gas.
Why is Energy Important for
Development?
 Energy Demand and Supply
 Energy Reserves
 Two types of energy reserves exist.
1. Proven Reserves
 Defined: A supply of energy remaining in deposits that have been
discovered.
2. Potential Reserves
 Defined: A supply of energy that is undiscovered but thought to
exist.
 Proven Reserves

Remaining supply of fossil fuels at current demand
 Coal: 131 years
 Natural Gas: 49 years
 Petroleum: 43 years
Why is Energy Important for
Development?
 Energy Demand and Supply
 Energy Reserves
 Potential Reserves
 Potential reserves can be reclassified as a proven reserve.
 Undiscovered Fields: Newly discovered reserves are generally smaller
and more remote, because the largest, most accessible fossil fuels
deposits have already been exploited.
 Enhanced Recovery From Already Discovered Fields: Techniques used
to remove the last supplies from a proven field.
 Unconventional Sources: Methods currently used to extract resources
won’t work because of insufficient technology, environmentally
unsound, or not economically feasible.
PETROLEUM PRODUCTION OUTLOOK
The International Energy Agency forecasts that potential reserves will be
converted to proven reserves through discovery and development of new
fields at about the same rate as already proven reserves are depleted.
Why is Energy Important for
Development?
 Energy Demand and Supply
 Controlling Petroleum Reserves
 Organization of the Petroleum Exporting Countries (OPEC)
formed in 1960 to gain more control over their resource, as a
result of U.S. and European transnational companies exploring
and exploiting the oil fields of developing countries.
 Members
 Southwest Asia and North Africa
 Algeria, Iraq, Kuwait, Libya, Qatar, Saudi Arabia, and United Arab Emirates
 Other Regions
 Angola, Ecuador, Iran, Nigeria, and Venezuela
 Under OPEC, prices set by governments possessing the oil
reserves rather than by petroleum companies.
U.S. PETROLEUM CONSUMPTION,
PRODUCTION, AND IMPORTS
Why is Energy Important for
Development?
 Energy Demand and Supply
 Changing U.S. Petroleum Sources
 Beginning in 1950s, extracting domestic petroleum became
more expensive than importing it from S.W. and Central Asia.
 U.S. imports increased from 14% (1954) to 58% (2009) of total
consumption
 Sharp price increases of oil set by OPEC countries during 1970s
and 1980s contributed to U.S. decreasing its reliance on OPEC
oil by ½.
 Share of imports from OPEC countries declined from 2/3 in 1970s to 1/3 in
1980s.
 Price (adjusted for inflation ) of petroleum plummeted to
lowest level, during the 1990s.
 Petroleum consumption significantly increased
Why is Energy Important for
Development?
 Alternative Energy Sources
 Nuclear Energy
 Electricity produced by splitting uranium atoms in a controlled environment
via a process called fission.
 One product of nuclear reactions is radioactive waste.
 Nuclear Energy Distribution
 Supplies 14% of world’s electricity
 Used by only 30 of world’s nearly 200 countries
 19 developed countries; 11 developing countries
 2/3 of world’s nuclear power generated in North America and Europe
 Most highly dependent countries clustered in Europe
 Relatively higher concentration of nuclear power plants in the Eastern half of
the U.S.
ELECTRICITY FROM NUCLEAR POWER
Nuclear power is used in 37 countries,
primarily in Europe and North America.
Why is Energy Important for
Development?
 Alternative Energy Sources
 Nuclear Energy Challenges
 Radioactive waste is highly lethal to humans.
 Not possible to burn or chemically treat such waste to make it
safe for human exposure.
 Waste must remain isolated from human contact for thousands of
years, until it loses radioactivity.
 Uranium is a nonrenewable resource
 Proven reserves projected to last 124 years at current
consumption rate.
 High Cost
 Nuclear power plants cost several billion dollars to build.
 Complexities of safe transportation and storage of radioactive
waste are costly.
Why is Energy Important for
Development?
 Alternative Energy Sources
 Renewable Energy
 Hydroelectric Power
 Harnesses the power of moving water to convert it to electricity.
 Leading source of renewable energy in both developed and
developing regions.
 2nd most popular source of electricity after coal
 Lack of remaining acceptable sites to construct a hydroelectric
dam poses a challenge to increasing reliance in U.S.
 Biomass
 Biomass energy sources include wood and crops that can be
burned as fuel to generate electricity and heat.
 Ex.: Sugarcane, corn, and soybeans can be processed into motorvehicle fuels.
Why is Energy Important for
Development?
 Alternative Energy Sources
 Renewable Energy
 Limiting Factors for Increasing Reliance on Biomass
 Inefficiency
 Burning biomass may require as much energy to produce the crops
as they supply.
 “Putting Food” in the Gas Tank
 Biomass already serves essential purposes, such as providing much
of Earth’s food, clothing, and shelter.
 Environmental Concerns
 Logging trees for wood to be burned may reduce the fertility of the
forest.
Why is Energy Important for
Development?
 Alternative Energy Sources
 Renewable Energy
 Wind Energy
 Relatively minimal impact on the environment
 Greater potential for increased use, because only a small portion
of the potential resource has been harnessed.
 Greatest challenge for expanding reliance is opposition by
environmentalists who voice their concerns about windmills
being noisy, lethal for birds and bats, and a visual blight on the
landscape.
WIND POWER
Winds are especially strong enough to
support generation of power in the U.S.
Plains states.
Why is Energy Important for
Development?
 Alternative Energy Sources
 Renewable Energy
 Solar Energy
 Ultimate renewable resource supplied by the Sun.
 U.S. receives 1% of its electricity from solar, but potential
growth is limitless.
 Solar energy is harness through one of two means.
1.
2.
Passive solar energy systems capture energy without using
special devices.
Active solar energy systems collect solar energy and convert
it either to heat energy or to electricity either directly or
indirectly.
SOLAR PANELS
Solar panels installed on
apartment rooftops in the
Old City of Jerusalem are
used to heat water, which
is stored in the adjacent
tanks. The domes are the
Church of the Holy
Sepulchre, built at the site
where Jesus is thought to
have been crucified,
buried, and resurrected
(see Chapter 6).
Solar panels
are
generating
electricity for
this family’s
house in
Rumbek,
South Sudan.