Agenda ► Questions? ► Review ► Global Economic Development (Chap 3) Digression on global communications and geodesy ► Processes of change (the third) ► Technology Economic Development Process Rostow’s Model Critics
Today Regional Economic Change ► Geodesy problem ► Rostowian internal growth theory ► Economic Base Staples Theory in Canada
p.46 24,902 mi 1,038 mph Circ=πd
The problem: ► How fast is our communications satellite moving, 22,000 miles above the equator?
The satellite is traveling at… ► 6,794.2 mph
Critics of Rostowian View ► Rostowian view is part of Modernization Theory: Science, reason and technology free us from scramble for subsistence Nation state will create the pre-conditions for take-off ► Has it happened? Manufacturing in developing countries e.g. China NICs
Under development persists Grinding poverty Benefits uneven: Inequality within LDCs Lack of access to basic nutritional, health, and education needs Environment degradation Totalitarian government ► Yet much of the developed world enjoys the high mass consumption phase ► Dependency and underdevelopment are active processes resisting any real form of take-off
Where are the trees? 19°N Reuters photo
Rostow: An Internal Growth Theory ► A “thousand points of light” ► From subsistence to local trade ► growing incomes stimulate manufacturing ► and competitive advantage ► reinforced by economies of scale. ► Market areas develop around settlements and urban areas emerge.
Trade centres with a linear market
Export Base Theory ► Basic industries export Compete internationally initially because of favourable resource base Regional specialization and economies of scale Growing interdependency as trade increases ► Non-basic industries develop to serve basic sector e.g. services
Staples Theory ► A Canadian theory of Harold Adams Innis ► Staple: a crude commodity or resource product ► Staples emerged at different times and places ► With distinctive upstream and downstream linked industries ► Influencing regional economic development
Global demand for Staples has regionalized impacts in Canada