Download Road to Development

Yesterday did not quite go so
successfully for everyone and
there was a little bit of
confusion, but that is okay that
is what learning is about!
So today, sit with the same groups
and get your “product” you were
working on yesterday.
Monday = Notes Day!
Please take out your notebooks!!!
• Announcements:
– I will be available after school Monday &
Tuesday to make up exam FRQs OR get
pass to come during 4th period.
– 9 week grades go out Friday!
– If you did not put your stamp sheet in your
portfolio on Friday, please do so and turn your
portfolio into the drawer at the door.
– 5th – 7th Periods if you did not take a quiz last
week you need to get notes and come in and
take that on your own time.
Soft Start
Don’t get discouraged by a bad
grade. We can work together to
make it better.
Always remember: Things could
always be a little worse…
Let’s try to get this info today so
we don’t have an epic fail on the
next assessments…

Today’s Notes
• We are learning about some very
important concepts today:
– Brandt Line
– Rostow’s Model of Development
– Wallerstein’s World Systems Theory: CorePeriphery Model
– The 4 Tigers of Development
• Note: Whatever notes we do not get
through today you will be responsible for
getting on your own.
Quick Review: What is
Development?
PLEASE START TO SHORT HAND
TO TAKE YOUR NOTES MORE
QUICKLY.
Let’s make some observations
• What 3 indicators are used?
• Which did we find was weighed the most
important?
• The HDI is worked out by putting together 3
important pieces of information:
– Life expectancy
– Literacy
– Real GDP (Gross Domestic Product – is how much
money earned)
Human Development Index
The Brandt Line
• Public awareness of the development gap is
not new.
• It was first brought into the news headlines in
the Brandt Report in 1980.
• This report by Willy Brandt, a German
politician, drew a line on the map that
separated the richer countries from the
poorer ones.
DRAW THE BRANT LINE ONTO YOUR
CATEGORILLA MAP AND LABEL IT (ALSO ADD
LABELS FROM THIS SLIDE)
• The MEDC’s are situated mainly in the northern
hemisphere.
• The LEDC’s are situated in the southern
hemisphere.
• The line loops around Australia and New
Zealand to include them in the richer half of the
map.
• Is this still accurate today?
Road to Development
Different Routes to Success
Balanced Growth
• through Self-Sufficiency
• A country should spread investment as
equally as possible across all sectors of its
economy and in all regions.
– Incomes in rural areas keep pace with urban
incomes
– Businesses remain independent of foreign
corporations
– Limit imports through tariffs and quotas
• India followed this policy
– Made imports difficult
– Discouraged Indian businesses from
exporting
– Could not convert Indian money into other
currencies
– Encouraged production of consumer goods
for Indian citizens
– Provided subsidies for struggling companies
Problems
• Inefficiency: without true competition,
companies have little incentive to improve
techniques, technology, products, etc
• Large Bureaucracy: needed to administer
the controls – complex and corrupt
Rostow’s Development
(Modernization)Model
• through International trade
• A country can develop economically by
concentrating scarce resources on
expansion of its distinctive local
resources
• Developed by W.W. Rostow (1950s)
Rostow - Stages of Growth
1. Traditional Society
•
Village in Lesotho. 86% of the resident workforce in
Lesotho is engaged in subsistence agriculture.
Copyright: Tracy Wade, http://www.sxc.hu/
Characterised by
– subsistence
economy – output
not traded or
recorded
– high levels of
agriculture and labor
intensive agriculture
– Wealth allocated to
nonproductive
activities (religious,
military
Rostow - Stages of Growth
2. Pre-conditions:
– An elite group
initiates
development
– Investments in
technology and
infrastructure
– Commercialization of
agriculture
The use of some capital equipment can help increase
productivity and generate small surpluses which can be
traded.
Copyright: Tim & Annette, http://www.sxc.hu
Rostow - Stages of Growth
3. Take off:
At this stage, industrial growth may be linked to
primary industries. The level of technology required
will be low.
Copyright: Ramon Venne, http://www.sxc.hu
– Increasing
industrialization in
limited areas (food or
textiles)
– Foreign investment
increases
– Infrastructure
improvements
– Some regional growth
– Economy still dominated
by traditional practices
Rostow - Stages of Growth
4. Drive to Maturity:
– Develops broad
manufacturing and
commercial base
– Industry more
diversified
– Increase in levels of
technology utilized
As the economy matures, technology plays an
increasing role in developing high value added
products.
Copyright: Joao de Freitas, http://www.sxc.hu
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.
Copyright: Elliott Tompkins, http://www.sxc.hu
Example: USA Path to
Development
• Stage 5: early 20th century
• Stage 4: late 19th century
• Stage 3: middle of 19th century
• Stage 2: first half of 19th century
• Stage 1: prior to independence
Criticisms
• Assumes LDCs will achieve each level of
development before advancing
• Uneven resource distribution (Zambia’s one
commodity market of copper developed trouble when world copper
price fell)
• Market Stagnation – MDCs market are
saturated, need to increase sales in LDCs
• Increased dependence on MDCs – when
concentrating resources in a “takeoff”
industry, then buy necessities from MDCs
Criticisms cont.
• Does not account for
–
–
–
–
–
–
–
Global politics
Colonialism
Physical geography
War
Culture
Ethnic conflict
Deindustrialization
• Cannot compare Nepal (stage 1) to Denmark
(stage 5) to Saudi Arabia
• Development does not necessarily lead to high
consumption, can mean social welfare
• Possible 6th stage – Postindustrial
– Service replaces industry
– Information replaces energy as key resource
International Trade Approach
• Some countries have switched from selfsufficiency approach to international trade
– according to the World Bank – international
trade countries have seen 4% growth, selfsufficiency countries 1%
• LDCs are exporting more manufactured
goods rather than agriculture or mining
goods
International Trade Approach
Cont.
• World Trade Organization (1995) works to
reduce barriers to international trade by
– Negotiate reductions in trade restrictions,
such as quotas & tariffs
– Enforces trade agreements
• WTO has been criticized for being
undemocratic (favor large corps over poor
nations) and for threatening sovereignty
International Trade Approach
• Foreign Direct Investment (FDI) –
investment made by a foreign company in
the economy of another country
• Only 1/3 went from a MDC to a LDC (only
10% went to African nations)
• Transnational Corporations are major
sources of FDI
Dependency Theory
• Structuralist alternative to Rostow’s
model
• Political and economic relationships
between countries and regions control
and limit the economic development of
less affluent regions
• Dependency helps sustain the
prosperity of the dominant regions and
the poverty of the lesser regions
Dependency Theory Cont.
• Little hope for economic prosperity in
regions and countries that have
traditionally been dominated by external
power (colonialism)
• Based on generalizations that pay little
attention to regional differences in
culture, politics, and society
World-Systems Theory
• Immanuel Wallerstein
• Divide world into
– Core
– Semi-periphery
– Periphery
Three Tier Structure
Core
Periphery
Processes that incorporate higher
levels of education, higher
salaries, and more technology
* Generate more wealth in the
world economy
Processes that incorporate 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.
* Serves as a buffer between core
and periphery
Core Periphery Model
• Core Regions
– High levels of socioeconomic prosperity
– Dominant players in global economic game
Anglo America HDI .94
Japan and the South Pacific HDI .93
Western Europe HDI .92
Core Periphery Model
• Periphery
– Poor regions
– Dependent on the core
– Do not have much control over their own
affairs
Periphery Regions
Latin America HDI .78
East Asia HDI .72
Southeast Asia HDI .71
Middle East HDI .66
South Asia HDI .58
Sub Saharan Africa HDI .47
Core Periphery Model
• Semi Periphery
– Regions that exert more power than periphery
regions but are
– Dominated to some degree by the core
Development Indicators
• Economic: GNP, PPP(purchasing power
parity), per capita energy consumption
• Noneconomic: HDI, gender equity, calorie
intake
A must know:
Four Dragons
• Aka Four Tigers or Gang of Four
• S. Korea, Singapore, Taiwan, and Hong
Kong
• Lacked natural resources
• Strongly influenced by Japan’s success
• Concentrated on handful of manufactured
goods
• Low labor costs
• Sell to MDCs
Practice: What major factor has
led the Four Asian Tigers to
economic success?
A. Raw Materials
B. Trading Goods
C. Cheap Immigrant Labor
D. Low Transportation Costs
E. Low land costs
Journal Practice/Reflection:
Rostow’s Model
1. Identify and discuss 2 critiques of
Rostow’s model.
2. Discuss some similarties between
the Rostow model and the
Demographic Transition Model.
• Finish categorilla for Wednesday. Try
the back from what we learned today
for extra credit.
Millennium Development Goals
• Adopted by world leaders in the year 2000 and set to be
achieved by 2015, the Millennium Development Goals
(MDGs) provide concrete, numerical benchmarks for
tackling extreme poverty in its many dimensions.
The MDGs also provide a framework for the entire
international community to work together towards a
common end – making sure that human development
reaches everyone, everywhere. If these goals are
achieved, world poverty will be cut by half, tens of
millions of lives will be saved, and billions more people
will have the opportunity to benefit from the global
economy.
Millennium Development Goals
The eight MDGs break down into 21 quantifiable targets that are
measured by 60 indicators.
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Goal 1: Eradicate extreme poverty and hunger
Goal 2: Achieve universal primary education
Goal 3: Promote gender equality and empower
women
Goal 4: Reduce child mortality
Goal 5: Improve maternal health
Goal 6: Combat HIV/AIDS, malaria and other
diseases
Goal 7: Ensure environmental sustainability
Goal 8: Develop a Global Partnership for
Development
http://www.undp.org/mdg/basics.shtml