Some of you have started ignoring this… If define: Define Give example Explain why it is an example without repeating If verb is identify only: Identify Explain/add depth (NOT repeat) If identify and explain/discuss/describe: Identify Explain/add depth (NOT repeat) Give and explain example OR provide further detailed explanation If verb is explain/describe/discuss only: Treat as identify and explain If give example: Provide example Explain why it is an example

Human Geo I know I look good today. Take out your graphic dictionary (first 8 words) and your chocolate article. Let’s talk about the chocolate.

Rostow’s Stages of Development vs. Wallerstein’s World Systems Theory

Warm Up! What is the primary sector of production? Secondary? Tertiary? What is Wallerstein’s World Systems Theory? How are transportation costs determined in Weber’s Least Cost theory?

First Stage—Traditional Economy Economy based mainly on primary activities Per capita income very low Rarely hear about new technology Small scale production Largely subsistence based economy Very little connection to NIDL Ex.—Afghanistan, Mongola

Second Stage—Preconditions for Takeoff Commercialization of agriculture—turning agriculture into a business Exploiting raw materials for larger profits Become connected to NIDL (exporting raw materials) Investment in infrastructure begins (roads, electrification) Ex.--Colombia

Third Stage—Take Off Lots of foreign direct investment comes (FDI) in (money from foreign countries) Country gets outsourced jobs High or low income? Country begins industrialization Country still largely agricultural, but becomes more urbanized Ex.—Mexico Others?

Fourth Stage—Drive to Maturity Technology diffuses throughout the country Way fewer people in traditional economy, increase in manufacturing Increase in education Increased in skilled labor, better jobs Ex—Chile, Malaysia

Fifth Stage—Mass Consumption Finally, high per capita income Leads to mass consumption-people buying lots of goods Service based economies Education and skill levels very high Ex.--USA

Review—Which level, AND why? Mexico (think of maquiladoras) United States Yemen—Very poor country, almost no development Costa Rica—Large coffee and banana plantations Chile—One of the richest countries in South America, almost no traditional economies Qatar—Highest GDP per capita in the world India—Think of call centers Afghanistan—Most of population involved in nomadic herding and subsistence agriculture Kenya—Exports wheat, coffee, and oil Malaysia—Mechanized agriculture and increasing service economy

How is Rostow different from Wallerstein?

Rostow vs. Wallerstein Rostow—National perspective--Specific countries progress through these stages as they develop (capitalism good) Foreign Direct Investment—good to allow countries to industrialize Outsourcing, low wage manufacturing Wallerstein— Global perspective--Core countries continually exploit periphery countries, periphery countries are not improving (communism good)

Review! How does your level of development in Rostow’s stages of modernity affect your role in the New International Division of Labor? Which theory do you support: Rastow’s Modernity strategy or Wallerstein’s World Systems theory? Why?

Addressing the Development Gap Economists are concerned with the gap between core and periphery countries North-South Gap—Most core countries in Northern hemisphere, periphery countries in Southern Hemisphere The gap is widening in many places What LDC’s want to do Industrialize to create per capita GDP growth Use that GDP growth to improve social and economic conditions What role should the government play in LDC’s to reach these goals?

3 Strategies International trade/free trade strategy Countries reduce trade barriers, like tariffs, to increase trade with other countries Encourage footloose industries, export processing zones Free-trade zones—Areas with special tax breaks for businesses, less labor and environmental laws Favor the Rostow approach to development Examples: China (kinda), India, NAFTA, EU, TPP, etc.

3 strategies Marxist/self sufficiency strategy Transnational/multinational corporations from core countries will only exploit us Use protectionist policies, like tariffs, to promote domestic industries, and keep foreign industries out Want to develop on their own Ex.—USSR, China until 1970’s, Cuba, North Korea

3 strategies Developmental state strategy Mixed economy! Government involvement in the economy as well as private industry Government focuses and provides capital (money) to invest in specific industries to develop based on comparative advantage Been successful for many countries, like…

Asian Tigers! Taiwan, Singapore, South Korea, and Hong Kong Governments invested in finance and tech manufacturing industries, and saw rapid GDP growth Now advanced countries!