2. Development
I. How is development
measured?
A. Economic Indicators of
Development
1. Primary Sector
2. Secondary Sector
3. Tertiary Sector
4. Quaternary & Quinary
Sector
B. Social Indicators
1. Education & Literacy
2. Health & Welfare
1. Diet (adequate
calories)
2. Healthcare Access
3. Development
C. Demographic Indicators of Development
1. Life Expectancy
2. Infant Mortality
3. Natural Increase
4. Crude Birth Rate
9. Development Theory
II.Models of Development
A. Self Sufficiency
1. Modest pace of development
2. Even distribution of development
3. Barriers established to protect local bus.
(tariffs, quotas, restrictions on imports)
4. Two problems:
a. inefficient businesses are protected.
b. Large bureaucracy develops
10. II. Rostow: International Trade
Traditional
Preconditions
for Take-Off
Take Off
Time
Drive to
Maturity
High Mass
Consumption
11. Traditional
Preconditions
for Take-Off
Take Off
Drive to
Maturity
High Mass
Consumption
Primary
Sector
Secondary
Sector
Tertiary
Sector
Vast
Majority
Vast
Majority
Declining
Few
Very Few
Very Few
Few
Rapid
Growth
Stable
Declining
Very Few
Very Few
Few
Rapid
Growth
Vast
Majority
12. Traditional
•Subsidence economy based on
effort intensive Farming.
- High effort, low output
•Producers consume the output.
Little available for trade
•Limited technology to process raw
materials or advance industry
•Informal Markets. Barter is king
13. Preconditions
for Take-Off
•Transportation infrastructure =
surplus from trade
•Tech improvement = Ag
Improvement, commercialized
•Amount of Capital & savings/
investment grows
•Single industry emerges
(textile)
14. Take Off
•Industrialization & Urbanization
•Growth = 1-2 regions & Handful of
Industries
•Amount of Capital & savings/
investment grows
•New political, social, and
infrastructure improvements to
support industry
15. Drive to
Maturity
•Diverse, self-sustained growth
of multiple industries
•New, diverse transportation
systems
•Econ development spreads to
all parts
•Advanced Manufacturing
develops
16. High Mass
Consumption
•Rapid expansion of tertiary
industries
•Industries shift to durable
consumer goods
17. II. Rostow: Criticisms
•Too Simple
•Necessitates Financial infrastructure for
success, relying on investment
•How will leaders use investment?
Palaces or infrastructure
•Ignores other necessary infrastructures:
Education, roads/rail, communication
•Assumes countries learn from others
experiences.
18. Development Theory
III.Wallerstein’s World System Analysis
A. Periphery: Low Income
1. Low tech use
2. High % Primary Activity
3. Low levels of Ed
B. Semi-Periphery
1. Former Periphery
2. Increased Econ Dev
3. Example: BRICS
C. Core: High Income
1. High Tech Use
2. High % Tertiary Activity
3. High levels of Ed, majority population
4. Examples: OECD, G8
19.
20.
21. Development Theory
IV.Structuralist Theory
A. Regional disparities are assumed, part of system
B. Geography determines economy, changes are
not easy.
V. Dependency Theory
A. Dominant areas rule over weak (imperialism)
B. Rich areas keep the poor areas down
1. Rich extract resources from poor
2. Rich loan $ to poor, keeps in debt