Monday, February 8, 2010

Chapter 9- Development

Case study

Bangledesh is a country that has development problems because of its location in the Ganges and Brahmaputra River Valley. Another reason is in the role of its women. One of the most important factors holding back economic development.

Development is the process of improving the material conditions of people through the diffusion of knowledge and technology. Countries can be classified according to their level of development…

  • MDCs more developed countries. These countries are challenged by trying to maintain their status.
  • LDCs less developed countries- used to be called "third world" now called "emerging markets". These countries challenges are to improve their status. In order to improve, they have to make connections to the global economy.

Varying levels of development. There are three factors that deal with this…

  • Economic factor- the Gross Domestic product per capita.the gross amount of goods and services produced in a country normally during a year. It involves dividing the the GDP by the total population to show the contribution an average individual in generating a countries wealth in a year.
    • The GDP in the USA is about $12 trillion, the population is about 300 million… therefore the GDP per capita is $40,000 western Europe, Canada and japan have an average of $30,000+ the lowest are (duh) in the poor parts of the war.
    • GNP, or gross national product, is similar to the GDP except it includes the income of people working from outside the country.
  • Social factor- geographers look at the literacy rate and education.
  • The demographic factor is life expectancy
  • Geographers from the UN combine these three factors to create the formula for the human development index.

Types of job sectors…    

    The average per capita income is higher in MDCs because of different types of jobs.

  • Primary sector- workers directly take materials from the earth.
  • Secondary sector- includes manufacturers.
  • Tertiary sectory- service sector
  • Quaternary- business services
  • Quinary sector- healthcare, education and government jobs.

In LDCs, they work in the first sec


 


 


 


 

First MDCs

European colonialism sustained development in Europe but slowed development in Africa and asia. In recent year there has been a new demand for resources in the LDCs (oil). This demand has helped in some countries. Just because the country has raw materials and energy resources, they don't have actual development but only potential. Some countries lack resources but still develop through world trade. (ie Japan or Switzerland)

Consumer Goods

    Essential goods and services are food clothing and shelter

    Consumer goods are the nonessentials. They promote wealth. The quantity and type of

    consumer goods can be indicators of development.    

  • Cars, phones, tvs and computers. In MDCS , most homes have one of each.
  • In MDCs people are better educated, healthier and protected from hardships. The more secure a population, the more economically productive they are.in general, high development means higher quality of education. The quality is measured in
    • Student/teacher ratio- the fewer pupils a teacher has, the more likely that each student will receive instruction
    • Literacy rate


 


 


 


 

Diet and Welfare

  • MDCs have too many calories and too much protein whereas in LDCs they do not have enough.
  • MDCs have welfare. Northwestern Europe has the most public services…. Denmark, Niorway, Sweden.


 

ESSAY. Periphery Model and Wallerstein's World Systems Analysis

Core periphery model says that the world is charachterized by a core, a periphery and semi-periphery.

  • Core- regions with high levels of development. Theyre the dominant players in the global economy. (EU, USA,Australia, New Zealand, Jakota Triangle- composed of Japan, Taiwan and South Korea)
  • Semi-periphery consists of regions that exert more power than those in the periphery but are still dominated to some degree by the core regions. (eastern Europe and some east and southeast asia ie hong kong and Singapore)
  • The periphery is composed of regions that are poor and underdeveloped. They are dependent in significant ways on the core.(Africa, latin America, south asia, and some east and south east asia.)

Most of the core countries can be found below 30 degrees north and 30 degree south. This is called the north south split.

  • The core-periphery relationship can also be on a local scale.

Immanuel Wallerstien came up with the World Systems Analysis.This says that social change in the developing world is linked to the economic activities of the developed world. According to his Analysis he coined the term "new international division of labor" where the periphery must always work for the poor. This tied together world political geography to economic geography. In a Capitalistic dominated world, the core countries weild political power. But it is possible for them to move up or down.


 


 

More Developed Regions

  1. Anglo-America- hDI .94
  • Canada and the USA are the Worlds leading consumers and as such are thee largest market for some countries. Theyre also the most important food exporter.
  1. Western Europe- HDI .93
  • It includes the EU and is potentially the world's largest market.
  1. Eastern Europe- .8
  • Currently behind western Europe because of its communist history. Most of them had these 5 year Gosplans. When communism fell, there was a rise of the Mob. This region is placed as a more developed region because the west will pick up the east.
  1. Japan- .94
  • This is remarkable.
    • #1 asset is an abundant supply of people willing to work hard even for low wages.
    • The japanesse government encouraged companies to sell products in orther countries at lower prices than domestic competitors.
    • after japan gained a foothold in the global economy, they began specialization.
    • They created a skilled labor force.
    • Japan put tons of money in research and development
  1. South Pacific- HDI .87
  • Australia and new Zealand make up this region. Other islands in oceania are considered less developed.

Less Developed Regions

  1. Latin America- HDI .80
  • It was once higher than Eastern Europe but now theyre equal.
  1. East Asia- HDI .76
  • China is the largest and dominant country in that region.
  1. Southeast Asia- HDI .58
  • Indonesia is the most populous country in the region. The most important product here is rice. Some countries in these region have had a rapid development.
  1. Middle East- HDI .68
  • Sometimes called southwest asia, this region has a desert climate.with the oil discovery, places like dubai in the united arab emerates have popped up. Petroleum has allowed these countries to enjoy a trade surplus. Countries that have benefitted from oil include saudia Arabia and the UAE.countries without oil have very limited development.
  1. South asia- HDI .58
  • It includes india, Pakistan etc. it also has the 2nd highest population and the 2nd lowest per capita income. It has a high population density, high nir, green revolution, and monsoons.
  1. Sub-saharan Africa- HDI .51
  • It has the least favorable prospects for development. It has low population density and many resources. However, it has the highest percentage of people living in poverty, poor health, and low education. BOUNDARIES. There is an imbalance between the number of inhabitants and the capacity of the land to feed the people. A good deal of Africa is tropical rainforests and deserts. There are many landlocked countries.

Obstacles to development

1/5 of the world's people liv in MDCs but they consume 5/6 of the world's goods. The LDCs try to catch up. There are 2 fundamental obstacles….

  1. Adopting policies
  • LDCs have used one of 2 models.
    • The self-sufficiency model, sometimes called the balance growth model, has been the most popular LDC model.especially India, China, Africa, Eastern Europe. The main philosophy is to spread iinvestment as equally as possible across all area of the economy.they try to nurse fledgling businesses by isolating them from competition with large international corporations. The countries promote trade barriers to limit the imported goods from other places through tariffs quotas and licenses. They are required to supply the country.
      • India's rupee is not allowed to leave the country. Two major problems…
        • Inefficiency ie. Maruti cars
        • They are also usually large beauracracies
    • International trade calls for a country to identify its distinctive economic assets. It can develop economically by concentrating its scarce resources to expand its distinctive local industries. Rostow's development started up in the 1950's and countries picked up on it in the 1960s.
      • 1. In the traditional society, a high percentage of the population is in agriculture.
      • 2. Preconditions for thakeoff on an elite groupe initates In this stage an elite group initiates economic activity and builds an infrastructure for growth.
      • 3. The takeoff- in the drive to maturity modern technology diffuses to a wide variety of industries
      • 4. The country starts to build a skilled and specialized work force.
      • 5. The age of mass consumption—they move from heavy industry to consumer goods.
      • 6. Post industrial stage where service replaces industry
        • Most MDCs are in 4,5,6
        • Most LDCs are in 1,2,3
        • This does assume movement from stage to stage to be possible.
    • This model is based on two factors: Western Europe and Anglo-America Joined by eastern Europe and japan so why shouldn't other countries follow this model?
    • LDCs have an abundant supply of resources. However, because colonial powers extracted resources and did not pay, these countries are LDCs but could still generate funds. Sometimes they can depend on only on resource which can be a problem. (ie. Zambia and copper)market stagnation can be a problem- the world market for low cost manufactured goods is slowing down because of decling MDC populations. Increased dependence on MDCs causes a problem because they neglect productions of essential goods. Ex: banana republics. In the 1990's many countries converted from the self-sufficiency model to the international trade approach. Some call this approach the modernization theory.
  1. Finding funds
  • LDCs need money from MDCs to finance development.
    • Loans from banks and international sorganizations. The two the lend money are the world bank and international monetary fund (IMF)
    • Or from direct investments by transnational corporations.
  • The dependency theory is an alternative to Rostow. Economic and political relationships between countries and regions of the world control and limit economic possibilities of the less developed world.what this theory focuses on is the impact of colonialism. After those countries reciieve their independence they are still dependent on those countries through neo-colonialism. All these theories are based on generalizations.

Case Study Revisited….

Gender inequality is the main factor holding back development

Gender related Development Index

Gender Empowerment Measure

Sub-saharan Africa and south asia

Lowest HDI and GDI

Southeast asia higher GDI than South Asia

Bangladesh- Grameen Bank