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    Ch26 Ch26 Presentation Transcript

    • Concepts of Development Chapter 26
    • What are some of the terms used to describe levels of development?
      • Developed/developing/underdeveloped
      • LDC/MDC/NIC
      • North/South (vs. East/West)
      • First/Second/Third/Fourth World
      • Transition economies
      • Emerging economies
    • What is the distribution of MDCs and LDCs in the world? (The Brandt Line)
    • How is development measured?
      • Economic indicators of development--GNP/GDP, Per capita income, value added, employment structure etc.
      • Social indicators of development--education, literacy, health, welfare (PQLI)
      • Demographic indicators of development--life expectancy, infant mortality, rate of natural increase, birth rate, doubling time
    • Positive correlation:
      • Example: countries with higher literacy rates also have higher percentage of employment in tertiary economic activities
    • Negative correlation
      • Example: Countries with high GDPs have low infant mortality rates.
    • Characteristics of Developing Countries
      • Lower levels of living and productivity
    • Per capita GDP
    • Purchasing Power Parity
    • Cycle of Poverty Reversing the Cycle Of Poverty
    • Characteristics of Developing Countries
      • Lower levels of human capital
    • % of population considered literate
    • Student-Teacher ratio (primary level)
    • Literacy rate of women
    • Health Indicators: Caloric Intake as a percent of daily requirements
    • Health Indicators: Persons per Physician
    • Life expectancy at birth – not just correlated with per capita income
    • Human Development Index = ( life expectancy at birth, GDP per capita, indices of schooling & literacy)
    • Characteristics of developing countries
      • Higher levels of inequality and absolute poverty
      Gini coefficient % below the poverty line
    • Characteristics of developing countries
      • Higher population growth rates
      Fertility Rate
    • Characteristics of developing countries
      • Larger rural populations…
    • … but rapid rural-to-urban migration
    • Characteristics of developing countries
      • Lower levels of industrialization and manufactured exports
      China factory World exports per capita
    • % of labor force in agriculture
    • Characteristics of developing countries
      • Adverse geography
    • Characteristics of developing countries
      • Underdeveloped financial and other markets
      • --banks
      • --stock markets
      • --domestic markets
    • Characteristics of developing countries
      • Lingering colonial impacts
      • --economies based on resource extraction
      • --monoculture
      • --continued economic dependence
      • --weak governmental institutions
      • --continued ethnic strife
    • Theories Regarding Development
      • Liberal Models (Modernization Theory /Stages of Growth)
      • Structuralist Models (Dependency Theory)
      • World-Systems Theory –Wallerstein
        • Cores/peripheries/semi-peripheries
    • Modernization Theory “Liberal” model
      • Holds that LDCs can develop economically if they follow a Western path.
      • Liberal school of economics--
      • Adam Smith in 1776 published Wealth of Nations in which he advocated the abolition of government intervention in economic matters.
      • This was “liberal” in the sense of no controls.
    • Every country can be positioned at one of these stages. Rostow viewed capitalism to be the proper type of production system for this development sequence. This theory has its critics.
    • What assumptions lie behind liberal models of development?
      • … that all countries will go through the same steps in developing.
      • … that economic disparities are the result of short-term inefficiencies.
    • Economic liberalism prevailed in the 1800s and early 1900s.
      • Main points of neoliberalism today:
        • 1. The rule of the market
        • 2. Cutting public expenditures for social services
        • 3. Deregulation
        • 4. Privatization
        • 5. Individual responsibility for well-being within society
    • Dependency Theory (Structuralist model)
      • Argues that the poor / periphery countries remain this way due to colonialism, in which terms of trade were unequal, labor remained unskilled and low-paid, and profit was extracted from colonies (Circular and cumulative causation.)
      • Development of core countries is dependent on the underdevelopment of periphery countries
      • Imports tend to be high-value goods from the core
      • Criticism of dependency theory – sweeping treatment of all peripheral territory
    • World Systems Theory: dynamic capitalist relations, hegemonic power
    • How does the core-periphery model and World Systems Theory apply to development issues?
      • The world has core, semi periphery, and periphery areas.
      • Individual countries need to be viewed in the context of their place within the world economic system.
    • What is sustainable development?
      • Partnerships
      • Conservation
      • Renewable resources
      • Loans to women and microcredit (such as the Grameen Village Bank in Bangladesh).