2. What determines economic
development?
• Resources
• Population
• Colonial status
• Geographic Location
• Climate
3. What does development look
like?
Less Developed Developed
Per capita incomes are low, and capital is Per capita incomes are high and capital is
scarce. readily available.
Wealth is unevenly distributed within
individual countries, e.g., Colombia, 2.6% Wealth is comparatively evenly
of population owns 40% of the national distributed, e.g., Canada, 10% of
wealth. population owns 24% of national wealth.
Primary industries dominate national Manufacturing and service industries
economies. dominate national economies.
High proportion of population engaged in Farming is commercial, efficient, and
subsistance agriculture. mechanized.
4. What does development look
like?
Less Developed Developed
Populations are rural; but cities are
growing rapidly. Populations urban, cities growing slowly.
Birth and death rates are high and life Birth and death rates are low and life
expectancy is low. There tends to be a expectancy is high. High proportion of
high proportion of children. people over 60 years old.
Inadequate or unbalanced diets resulting
from a low consumption of protein; Adequate supplies of food and balanced
hunger and malnutrition common. diets; overeating sometimes a problem.
Diseases, especially infectious and
parasitic diseases, common. Health care Low incidence of disease; good medical
poor. services available.
5. What does development look
like?
Less Developed Developed
Overcrowding, poor housing, few public
services, bad sanitation--poor social
conditions. Social conditions generally good.
Poor educational facilities, high levels of Education opportunities excellent, high
illiteracy--low levels of scientific and literacy, advanced science and
technological development. technology.
Women may be held in an inferior Women are increasingly treated on equal
position in society. terms with men.
6. How is development measured?
• Gross Domestic Product Per Capita
– aka GDP per capita
– value of goods and services produced within a country
within a given year
– Other similar measures include GNP (broader value),
PPP(involves the differences in exchange rates between
currencies)
– Usually calculated in US dollars to allow comparisons
between countries
7. Measuring Development
• Gross Domestic Product per Capita
High human development 25,167
Medium human 1,237
development
Low human development 358
8. Gross Domestic Product
High Human Development
Luxembourg Canada Denmark Singapore M exico
59,143 27,079 39,332 21,492 6,121
9. Gross Domestic Product
Medium Human Development
Equatorial
Armenia China Indonesia Bolivia Guinea
918 1,100 970 892 5,900
10. Gross Domestic Product
Low Human Development
Tanzania, Burkina
Djibouti Haiti U. Rep. of M alawi Faso
886 346 287 156 345
11. How is development measured?
• Rates
– Literacy
– Infant mortality
– Caloric intake
– Natural increase
– Inflation
12. How is development measured?
• Occupational Structure of the Workforce
– PRIMARY (agriculture)
– SECONDARY (industry)
– TERTIARY (services)
– QUATERNARY
– QUINARY
13. Occupational Structure
– China GDP $6,200
– agriculture 49%, industry 22%, services 29%
– Australia GDP $32,000
– agriculture 3.7%, industry 26.4%, services 70%
– Philippines GDP $5,100
– agriculture 36%, industry 16%, services 48%
14. Occupational Structure
– Luxembourg GDP $59,143
– Agriculture 1%, industry 30%, services 69%
– Singapore GDP $21,492
– agriculture 0%, industry 30%, services 70%
– Equatorial Guinea GDP $5,900
– agriculture 20%, industry 60%, services 20%
15. Occupational Structure
– Haiti GDP $346
– Agriculture 32%, industry 20%, services 48%
– Malawi GDP $156
– agriculture 37%, industry 29%, services 34%
16. Other Measures of Development
• Unemployment
The number of people who (in a given year)
were not working but were available for
work and had taken steps to seek work. In
some circumstances where employment
opportunities are particularly limited in a
country, the last criteria ("had taken steps to
seek work") may be relaxed.
17. Other Measures of Development
• Telephone Lines
Number of subscriber lines (business and
residential) plus public telephones per 100
inhabitants. This series is calculated by
dividing the number of main lines by the
population, and multiplying by 100.
18. Other Measures of Development
• Undernourished
The percentage of the population whose
food intake falls below the minimum
requirement needed to meet dietary energy
requirements on a regular basis.
19. Other Measures of Development
• Television Receivers
Number of television receivers and/or
number of licenses issued per thousand
inhabitants.
• Water Resources per Capita
Average amount of water that is available
per person from rivers and groundwater
each year.
20. Human Development Index
• Created by the United Nations
• Measures three types of factors: economic, social,
and demographic
– Economic factor selected GDP per capita
– Social factors are literacy and amount of education
– Demographic factor is life expectancy
• Factors combined for a maximum of 1.0 or 100%
• 2001: Norway #1 with .944
21. ██ high (0.800–1) ██ medium (0.500–0.799) ██ low (0.300–0.499) ██ n/a
World map indicating Human Development Index (2004).
23. Concepts of Development
• Developed vs underdeveloped (negative)
• Developed vs developing? Implies progress
has been made and country intends to
continue
• LDC vs MDC
24. Core Periphery Model
• Scholars criticizing developed and developing
argued for this new approach
• Grew from Wallerstein’s World Systems Theory
• Sensitive to geographical differences and the
relationships among development processes
occurring in different places
• Focuses on economic relationships
– Core
– Periphery
– Semi periphery
25. 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
Eastern Europe HDI .78
26. Core Periphery Model
• Periphery
– Poor regions
– Dependent on the core
– Do not have much control over their own
affairs
27. 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
28. Core Periphery Model
• Semi Periphery
– Regions that exert more power than periphery
regions
– Dominated to some degree by core
29. The North South Divide
http://en.wikipedia.org/wiki/Image:Northsouth.png
Based on the 1980’s Brandt Report. Suggested a simplified world
contrast of development and undevelopment based on degree of
industrialization and per capita wealth.
30. Models of Development
• Liberal Models
– All countries are capable of development
– Economic disparities are a result of short term
inefficiencies in local or regional market forces
31. Models of Development
• Structuralist Models
– Regional disparities are a structural feature of
the global economy
– Things have come to be organized or structured
in a way and cannot be changed easily
32. Modernization Model
• Walt Rostow, 1950’s, Stages of Growth Model
• Liberal model
• Development through international trade
• Suggests that all countries follow a similar path
through economic development
– Traditional
– Preconditions to takeoff
– Takeoff
– Drive to maturity
– High mass consumption
33. Traditional
• Not yet started development
• High % of people engaged in subsistence
agriculture
• High % of wealth allocated to
‘nonproductive activities’ such as religion
and military
• Rigid and unchanging social structure
• Resistence to technological change
34. Preconditions of Takeoff
• An elite group initiates innovative economic
activity
• Country begins investing in new technology
and infrastructure
• Stimulate increase in productivity
• Progressive leadership
35. Takeoff
• Rapid growth facilitated by a limited
number of economic activities
• Some sectors of the economic structure
remain dominated by traditional practices
• Industrialization, urbanization, mass
production
36. Drive to Maturity
• Modern technology diffuses to wide variety
of industries
• Industries experience rapid growth similar
to the early takeoff industries
• Workers become more skilled and
specialized
• Modernization in the core
• Population growth declines
37. High Mass Consumption
• Economy shifts from production of heavy
industry such as steel and energy to
consumer goods like refrigerators and motor
vehicles
• High incomes
• Widespread production of a variety of
goods and services
• Majority of workers in service sector of
economy
38. Dependency Theory
• Structuralist alternative to Rostow’s model
• Political and economic relationships
between countries and regions control and
limit the economic development of less well
off regions
• Dependency helps sustain the prosperity of
the dominant regions and the poverty of the
lesser regions
39. Dependency Theory
• Little hope for economic prosperity in
regions and countries that have traditionally
been dominated by external power
• Based on generalizations that pay little
attention to regional differences in culture,
politics, and society
