1. Development & Industry
Resources:
Textbook, Chapters 10 & 12
Wood book, Unit 6 (Industrialization & Economic Development)
Important Dates:
5/4 – Chapter 10 & 12 Quiz
5/6 – Development & Industry Test

2. DEVELOPMENT
Chapter 10
The single most important geographic fact of development is its’ striking unevenness.

3. Cartogram: World Population

4. Cartogram: GDP

5. The difference is development.
Population
Economy
The difference is development.

6. How do you define & measure development?
Wealth does not depend only on what is produced, but largely on how and where it is produced.
Development implies progress
Often controversial b/c not tied to happiness, social stability or sustainability
3 major areas to measure: economic welfare, technology and production, social welfare

7. Indicators of Development
Economic indicators of development
Gross domestic product per capita
Types of jobs
Raw materials
Consumer goods
Social indicators of development
Education and literacy
Health and welfare
Demographic indicators of development
Life expectancy – Infant mortality rate
Natural increase rate – Crude birth rate

8. Measuring Economic Welfare
Gross Domestic Product (GDP)
Measure of the total value of the officially recorded goods and services produced with a country by the citizens and corporations in a given year
Gross National Product (GNP)
Measure of the total value of the officially recorded goods and services produced by the citizens and corporations of a country in a given year, both inside and outside a country’s territory
Gross National Income (GNI)
Most common measurement used today – per capita
Measure of the monetary worth of what is produced within a country plus income received from investments outside the country
Limitations of GNI:
Formal economy vs. informal economy
Distribution of wealth
Measures only output, not costs of production

9. Annual GDP per capita, 2005
Fig. 9-2: Annual gross domestic product (GDP) per capita averages over $20,000 in most developed countries but under $5000 in most less developed countries.

10. Informal economy

11. Formal economy

12. Other Ways of Measuring Development
Technology & Productivity:
Occupational structure of the labor force (employment in sectors of the economy)
Productivity per worker (production divided by total labor force)
Transportation and communications facilities per person (per capita index of transportation and communications per person)
Social Welfare:
Dependency ratio (dependents, young and old, that each 100 workers must support)

13. Dependency Ratio, 2007
A measure of the number of people under the age of 15 and over the age of 65 who depend on each working-age adult

14. Development Models Criticisms:
“Progress” – industry  better or worse?
Similar path or process in all countries
Walt Rostow’s Modernization model
5 Stages of Development:
Traditional
Preconditions of takeoff
Takeoff
Drive to maturity
High mass consumption

16. AKA Rostow’s Ladder of Development

17. Problems with Rostow’s Model and the International Trade Approach
Developmentalism
The idea that every country and region will eventually make economic progress toward “high mass consumption” provided that they compete to the best of their ability.
This is not likely and is hard on the planet.
Increased dependence on MDC’s and their markets
Undue influence of many global policies, including those of the U.N. and World Bank.
Market Stagnation
The MDCs have very limited population growth. Markets for low-cost manufactured goods grow slowly today.
Undervalues the obstacles and competitive disadvantages faced by late starters vs. those in the Core.