1. The Cultural Landscape: An Introduction to Human Geography
Chapter 9: Development
The Cultural Landscape:
An Introduction to Human Geography

2. warm up What are the 3 sectors of the economy?
Give 2 actual examples of each sector.

3. Development
The process of improving the material conditions of people through the diffusion of knowledge and technology
More developed countries (MDCs)
AKA developed countries, Core Countries
Newly Industrialized Countries (NICs)
AKA semi-periphery countries
Lesser developed countries (LDCs)
AKA emerging or developing countries, periphery

4. Why Does Development Vary Between Countries?
Economic indicators of development
The Human Development Index (HDI)
Four factors used to assess a country’s level of development:
Economic = (1) gross domestic product (GDP) per capita
Social = (2) literacy and (3) amount of education
Demographic = (4) life expectancy

5. Human Development Index
Figure 9-1

6. Why Does Development Vary Among Countries?
Economic indicators of development
Types of jobs
Primary sector
Secondary sector
Tertiary sector
Quaternary sector (knowledge-based: IT, consultation, education, R&D)
?Quinary sector? (health, culture, and research)
Productivity
Measured by the value added per capita
MDCs are more productive than LDCs
Consumer goods (final product)

7. Money-making activities
Economic Geography
Money-making activities

8. Primary activities
Any activity where a natural resource (raw material) is used directly for profit.
Farming
Fishing
Mining
Logging

9. Secondary activities
When raw materials are taken to produce or manufacture a product.
Iron and Coal (extracted – primary) produces Steel
Steel produces thousands of parts for machinery of all kinds. (automobiles)
Cotton is harvested (primary)
Taken to a factory and made into clothes

10. Tertiary (Service) activities
Anything that provides a product or service to the public.
Largest sector of an MDC country today.
Banking, education, medicine, retail or wholesale sales, food service, military, insurance, entertainment

11. Quaternary Sector (a branch of the Tertiary Sector)
Involves the collection, processing, and manipulation of information.
Engineering
Research and development
Information technology
Software
Web design
Support

12. Quinary Sector (a further branch of the Tertiary Sector, Quaternary)
The quinary sector of the economy is defined by some to as the highest level of intellectual efforts.
Health
Culture
Research
Politics

13. Motor Vehicles Per 1,000 Persons
Figure 9-4

14. Why Does Development Vary Among Countries?
Social indicators of development
Education and literacy
The literacy rate
LDCs frequently have more students per teacher
Health and welfare
Diet (adequate calories)
Access to health care

15. Students Per Teacher, Primary School
Figure 9-6

16. Why Does Development Vary Among Countries?
Demographic indicators of development
Life expectancy
Babies born today in MDCs have a life expectancy in the 70s; babies born in LDCs, in the 60s
Other demographic indicators:
Infant mortality
Natural increase
Crude birth rate

17. Where are MDCs and LDCs Distributed?
More developed regions
North America and Europe
Other MDCs with high HDI = Russia, Japan, Australia, and New Zealand
Less developed regions
Latin America = highest HDI among LDCs
Southwest Asia, Southeast Asia, Central Asia = similar HDI
South Asia and sub-Saharan Africa = low levels of development

18. More and Less Developed Regions
Figure 9-10

19. Where Does Level of Development Vary by Gender?
Gender-Related Development Index (GDI)
Compares the level of women’s development with that of both sexes
Four measures (similar to HDI):
Per capita female incomes as a percentage of male per capita incomes
Number of females enrolled in school compared to the number of males
Percent of literate females to literate males
Life expectancy of females to males

20. Gender-Related Development Index (GDI)
Figure 9-17

21. Demographic Indicator of Gender Difference: Life Expectancy
Figure 9-21

22. Where Does Level of Development Vary by Gender?
Gender Empowerment Measure (GEM)
Compares the decision-making capabilities of men and women in politics and economics
Uses economic and political indicators:
Per capita female incomes as a percentage of male per capita incomes
Percentage of technical and professional jobs held by women
Percentage of administrative jobs held by women
Percentage of women holding national office

23. Gender Empowerment Measure (GEM)
Figure 9-22

24. Economic Indicator of Empowerment: Professionals
Figure 9-23

25. Progress Toward Development
Figure 9-26

26. Why Do LDCs Face Obstacles to Development?
Development through self-sufficiency
Characteristics:
Pace of development = modest
Distribution of development = even
Barriers are established to protect local business
Three most common barriers = (1) tariffs, (2) quotas, and (3) restricting the number of importers
Two major problems with this approach:
Inefficient businesses are protected
A large bureaucracy is developed

27. Paths to Development India’s Self-Sufficiency Model
Jawaharlal Nehru: the first Prime Minister of independent India (1947–64)
Nehru chose a path that focused on internal development without outside interference.
Backlash to years of British control.
It was based on isolation and a system of high tariffs and quotas.
Discouraged exports and instead focused on producing for internal consumption.

28. Paths to Development India’s Self-Sufficiency Model
Government controlled prices created monopolies and this led to inefficiency.
A complex bureaucracy led to a reduction in entrepreneurship.
Since the early 1990’s open market reforms have led to rapid increase in development.

29. Why Do LDCs Face Obstacles to Development?
Development through international trade
China’s Market Socialist model
Rostow’s model of development
Examples of international trade approach
The “four Asian dragons”
Petroleum-rich Arabian Peninsula states
Three major problems:
Uneven resource distribution
Increased dependence on MDCs
Market decline

30. International Trade Approach
China’s Market Socialist model
Central planned economy
Gradual approach starting with Special Economic Zones
Joint partnerships have led to direct foreign investment.
Government backed, slow privatization

31. Rostow - Stages of Growth
The work of American Walt W. Rostow
Rostow is an economic historian
Countries can be placed in one of five categories in terms of its stage of growth:
A child in Sierra Leone making breakfast. Which stage would a country like Sierra Leone fit in?

32. Rostow - Stages of Growth
Traditional Society
Characterised by
subsistence economy – output not traded or recorded
existence of barter
high levels of agriculture and labour intensive agriculture
Village in Lesotho. 86% of the resident workforce in Lesotho is engaged in subsistence agriculture.

33. Rostow - Stages of Growth
2. Pre-conditions:
Development of mining industries
Increase in capital use in agriculture
Necessity of external funding
Some growth in savings and investment
The use of some capital equipment can help increase productivity and generate small surpluses which can be traded.

34. Rostow - Stages of Growth
3. Take off:
Increasing industrialisation
Further growth in savings and investment
Some regional growth
Number employed in agriculture declines
At this stage, industrial growth may be linked to primary industries. The level of technology required will be low.

35. Rostow - Stages of Growth
4. Drive to Maturity:
Growth becomes self-sustaining – wealth generation enables further investment in value adding industry and development
Industry more diversified
Increase in levels of technology utilised
As the economy matures, technology plays an increasing role in developing high value added products.

36. 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.

37. Criticisms: Too simplistic
Necessity of a financial infrastructure to channel any savings that are made into investment
Will such investment yield growth? Not necessarily
Need for other infrastructure – human resources (education), roads, rail, communications networks
Efficiency of use of investment – in palaces or productive activities?
Rostow argued economies would learn from one another and reduce the time taken to develop – has this happened?

38. Why Do LDCs Face Obstacles to Development?
International trade approach triumphs
The path most commonly selected by the end of the twentieth century
Countries convert because evidence indicates that international trade is the more effective path toward development
Example: India
World Trade Organization
Foreign direct investment

39. Triumph of International Trade Approach
Figure 9-28
Figure 9-27

40. What Is the WTO?
The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations.
WTO agreements are negotiated and signed by the trading nations and ratified in their parliaments.
The goal is to help producers of goods and services, exporters, and importers conduct and grow their business.

41. The Goal
To improve the welfare of the peoples of the member countries.

42. Past, Present, Future The WTO came into being in 1995.
The WTO is the successor to the General Agreement on Tariffs and Trade (GATT), established in the wake of the Second World War.

43. The Past 50 Years: Exceptional Growth in World Trade
Merchandise exports grew on average 6% annually
Total trade in 1997 was 14 times the level of 1950
In 1997, 40 governments concluded negotiations for tariff free trade.

44. The Organization Chart

45. The Quad
Some of the most difficult negotiations have needed an initial breakthrough in talks among the four largest members
Canada  European union  Japan  United States

46. Criticisms of the WTO The WTO undermines state sovereignty
It undermines representative democracy
Member nations are prevented from protecting the environment
Members are unable to uphold laws guaranteeing workers’ rights
The WTO is controlled by the larger nations
The WTO represents the interests of large corporations and wealthy citizens

47. Some protesters have arguments fully worthy of consideration
Some protesters have arguments fully worthy of consideration. They deserve a better venue for hearing than the streets.
Nihilistic anarchists usually capture the legal protest, along with, lugubrious labor Luddites, trade terrorists, and…
…the clueless

48. Foreign Direct Investment
Figure 9-30

49. Why Do LDCs Face Obstacles to Development?
Financing development
LDCs require money to fund development
Two sources of funds:
Loans
The World Bank and the IMF
Structural adjustment programs
Foreign direct investment from transnational corporations

50. Debt as a Percentage of Income
Figure 9-31

51. Why Do LDCs Face Obstacles to Development?
Fair trade approach
Products are made and traded in a way that protects workers and small businesses in LDCs
Two sets of standards
Fair trade producer standards
Fair trade worker standards
Producers and workers usually earn more
Consumers usually pay much higher prices

52. Wallerstein’s World System Theory
Periphery?
Core?
Wallerstein’s World System Theory

53. Core and Periphery Model
Polar Projection

54. The Emergence of the World System
The world system is the result of the increasing interdependence of cultures and ecosystems that were once relatively isolated by distance and boundaries.
Of particular significance to the development of the world system was the European Age of Discovery, wherein the European sphere of influence began to be exported far beyond its physical boundaries by means of conquest and trade.

55. Influence of the Capitalist World Economy
The defining attribute of capitalism is economic orientation to the world market for profit.
Colonial plantation systems led to monocrop production in areas that once had diverse subsistence bases (beginning in the seventeenth century)…PLANTATIONS.
Colonial commodities production was oriented toward the European market.

56. Immanuel Wallerstein
Born September 28, 1930 in New York City, is an American sociologist, historical social scientist, and world-systems analyst. His bimonthly commentaries on world affairs are syndicated.
Wallerstein first became interested in world affairs as a teenager in New York City, and was particularly interested in the anti-colonial movement in India at the time.

57. Wallerstein’s World System Theory
Wallerstein has argued that international trade has led to the creation of a capitalist world economy in which a social system based on wealth and power differentials extends beyond individual states.
The world system is arranged according to influence: core (most dominant), to semi-periphery, to periphery (least dominant).
The core consists of the strongest and most powerful nations in which technologically advanced, capital-intensive products are produced and exported to the semi-periphery and the periphery.
The semi-periphery consists of industrialized “Third World” nations that lack the power and economic dominance of the core nations (Brazil is a semi-periphery nation).
The periphery consists of nations whose economic activities are less mechanized and are primarily concerned with exporting raw materials and agricultural goods to the core and semi-periphery.

58. Wallerstein’s World Systems Questions
FRONT ROW:
What was the New European Division of Labor that emerged in the late 15th and early 16th century.
SECOND ROW:
What was the historical relationship between the Core and the Periphery?
THIRD ROW:
How are some regions considered “Semi-Periphery” by Wallerstein and what role did they play?

59. World Systems theory
Dependency theory is a body of social science theories predicated on the notion that resources flow from a "periphery" of poor and underdeveloped states to a "core" of wealthy states, enriching the latter at the expense of the former.
It is a central contention of dependency theory that poor states are impoverished and rich ones enriched by the way poor states are integrated into the "world system."
Dependency theorists like Andre Gunder Frank, were criticised by later Marxists because it only describes the relationship between the core and periphery as a two tier model and doesn’t explain fully.
Wallerstein refined Frank’s dependency theory in his World Systems Theory

60. Four aspects of Wallerstein’s World Systems Theory
Developing countries are not exploited by individual countries but by the whole capitalist, profit-seeking system in a Modern World System. The MWS is a unified system of capitalism

61. Three zones in the MWS
i. The core/developed nations – these control world trade and monopolize manufactured goods
ii. The semi-peripheral zone e.g. Brazil, South Africa, India, have urban areas like the core but large areas of rural poverty like the periphery
iii. The peripheral countries e.g.. Most of Africa – they provide primary products for both the semi periphery and the core

62. Wallerstein’s model is dynamic (This allows for movement and change).
Countries are ‘socially mobile’ they can move in from the periphery into the semi periphery
(ex. Asian tigers) or out from the core to the semi periphery (Russia, sometimes...)

63. While Wallerstein refines Frank’ theory there are still similarities
Both show how surplus value created in the periphery is appropriated by the semi periphery and especially the core
Both see the origins of exploitation of some countries by others to have originated in slavery, colonialism and neo-colonialism

64. Modern World System of capitalism is profit seeking
The pursuit of profit by capitalism results in exploitation between classes
Commodification – everything is turned into a commodity to be bought and sold

65. Wallerstein’s World Systems Questions
FOURTH ROW:
What was 1 aspect of Wallerstein’s Stages 1 and 2 of Growth that would help a state grow?
What was 1 aspect of Wallerstein’s Stages 3 and 4 of Growth that would help a state grow?

66. Modern World System of capitalism is profit seeking
De-skilling of labor
Proletarianization occurs
(ie. The nature of call centers?)
Wallerstein argues that this process also occurs between nations
Karl Marx

67. Evaluation of World Systems Theory Weaknesses
Both Frank and Wallerstein are economically deterministic
Wallerstein does not say how capitalism can be overcome as Marx said it would

68. Evaluation of World Systems Theory Weaknesses
Wallerstein does not look at internal factors (ie. mismanagement and corruption in the LDC’s)
Methodology is too vague and unscientific, ‘core’ etc cannot be clearly operational zed

69. Evaluation of World Systems Theory Strengths
1 Wallerstein was one of the first to recognise ‘globalisation’ of the world and the international division of labour as the basis of global inequality

70. Evaluation of World Systems Theory Strengths
Globalisation theorists also show how dependency is not a one way process, there is inter-dependency between the developing and western world.
(E.g. economic crisis caused by debt can ripple out and affect core nations – unemployment and destabilisation of western currencies)