Development Notes Chapter 10 Slides 1-15

Development Case Study: Jamaica Caribbean island – resorts …… beyond paradise is another world permanent residents in poverty / earn less money in a year than a night’s hotel bill this is shielded from tourists what would you think if a very expensive and exclusive resort were built in your neighborhood and you and your family, who were economically disadvantaged were expected to work there to serve the needs of vacationers? welcome the money? resent the wealthy tourists world is divided between relatively rich and relatively poor geographers try to understand the reasons for this division and what can be done about it

Development Case Study: Bangladesh

What is development? development: The extent to which a society is making effective use of its human and natural resources. developing: progress is being made in technology, production, and socioeconomic welfare Continuum with huge global disparities.

MDCs and LDCs MDC = More Developed Country (“developed”) has progressed further along continuum economic challenge: maintain high level of development at the new global scale of economy LDC = Less Developed Country (“developing”) economic challenge: find connections to the global economy by taking advantage of local diversity in skills and resources

What is development? Manufacturing gravel in Trivandrum, India

Measuring Development Economic Indicators: GNP = Gross National Product ●created by economists to compare countries ●total value of officially recorded goods and services produced in a year (inside and outside state territory)

Measuring Development Economic Indicators: GDP = Gross Domestic Product ●goods and services produced within a country during a given year ●GDP per capita = GDP divided by population number ●Can mask variation / distribution of wealth

Measuring Development US GDP = $12 trillion ■ GDP per capita - economic indicator used in HDI (in U.S. - $40,000) ● used because per capita income is difficult to obtain ● annual per capita GDP in 2005 avg. $27,000 in all MDCs, avg $4,000 in LDCs ● $60,000+ in Luxembourg ● $30,000+ in 9 other European countries and Canada and Japan ● 18 countries per capita GDP below $1,000 (15 - Africa, 3 - Asia) ■ GDP per capita can be misleading - doesn’t reflect variation within a country / doesn’t reflect distribution of wealth

Measuring Development Economic Indicators: GNI = Gross National Income ●monetary worth of what is produced within a country plus income received from investments outside the country ●GNI per capita = GNI divided by population ●limitations: ○What about informal economy? ○Masks uneven distribution of wealth ○Does not account for production costs

Measuring Development Economic Indicators: GNI clearly shows contrast between rich and poor countries: 2008 Japan$31,410 USA$41,950 Luxembourg$65,340 Nigeria$ 1,040 Indonesia$ 3,720

Measuring Development Economic Indicators: technology and production ●types of jobs (primary, secondary, tertiary) ●productivity per worker (level of mechanization) ●transportation and communication services per person

Measuring Development ● development in technology and production (part of economic indicators of development) ○ measure Occupational Structure of the Workforce - percentage of workers employed in various sectors (many in production of food staples = low development; many in high-tech industries and services = high development) ■ types of jobs: ● primary - directly extract materials from Earth (agriculture, mining, fishing, forestry) ● secondary - manufacturers that process, transform, and assemble raw materials into useful products ● tertiary - provision of goods and services to people in exchange for payment (retailing, banking, law, education, government). Also includes former categories of quarternary-sector and quinary-sector. ○ measure Productivity per Worker - sum of production divided by total number of people in labor force. More productive = higher mechanization ■ measured by value added per worker (gross value of product minus costs of raw materials and energy) (around $80,000 in US, $70,000 in Japan, $1,000 China, $500 India) ■ MDC workers produce more with less effort - more machines, tools, equipment ■ LDCs - rely on human and animal power

Measuring Development ○ requires access to raw materials and energy ■ 20th C - US and Russia - became powerful industrial states b/c wide variety of raw materials and energy resources ■ UK - abundant coal and iron ■ colonialism - to ensure abundant supply of raw materials for European economic development. Result: sustained econ. dev. in Europe; stunted econ. dev. in Africa and Asia. Even after independent, former colonized states still export raw materials to MDCs and import finished goods and services ■ petroleum - value has grown and financed development ■ cotton and copper - prices have fallen (excessive supply, declining demand) - LDCs with these have had difficulty achieving development ■ some countries develop without abundant resources through trade (Japan, Singapore, South Korea, Switzerland) ○ measure Transportation and Communications Facilities per Person - reflects infrastructure that facilitates economic activity (motor vehicles, telephones, computers) ■ land line telephones: 500+ per 1,000 inhabitants in MDCs (fewer than 100 in LDCs) ■ motor vehicles: 400+ per 1,000 inhabitants in MDCs (fewer than 100 in LDCs) ■ internet users: 300+ per 1,000 inhabitants in MDCs (fewer than 100 in LDCs) ■ LDCs - gap between haves (usually urban) and have nots (usually rural)--can result in political unrest ■ contribute to social and cultural elements of development - leisure activities, new ideas, exposure to cultural diversity ■ cell phones - less costly / available to more - starting to close gap