Development Chapter 9 An Introduction to Human Geography The Cultural Landscape, 8e James M. Rubenstein Chapter 9 Development PPT by Abe Goldman

Ch 9: Development Terms you should have heard of: Gross Domestic product (GDP) Less developed country (LDC) Literacy Rate More Developed Country (MDC) Primary Sector (primary industries) Secondary Sector (secondary industries) Tertiary Sector (tertiary industries) Define the following: Development Gender Empowerment Measure (GEM) Gender-Related Development Index (GDI) Human Development Index (HDI) Productivity Structural adjustment program Value Added

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

Human Development Index Norway HDI – Four Factors Economic 1. GDP per capita Social 2. Literacy rate 3. Education Attainment Demographic 4. Life Expectancy Niger Fig. 9-1: Developed by the United Nations, the HDI combines several measures of development: life expectancy at birth, adjusted GDP per capita, and knowledge (schooling and literacy).

Economic Indicators of Development The United Nation’s HDI includes one economic indicator of development: gross domestic product per capita. Four other economic indicators distinguish more developed from less developed countries: economic structure worker productivity access to raw materials and availability of consumer goods.

Human Development Index Norway HDI – Four Factors Economic 1. GDP per capita Social 2. Literacy rate 3. Education Attainment Demographic 4. Life Expectancy Niger Fig. 9-1: Developed by the United Nations, the HDI combines several measures of development: life expectancy at birth, adjusted GDP per capita, and knowledge (schooling and literacy).

Econ Indicator: Annual GDP per Capita MDCs Average – $20,000 $10 - $15 per hour LDCs Average – $1,000 $0.50 per hour

Types of Jobs Average per capita income is higher in MDCs because people typically earn their living by different means than in LDCs. Jobs fall into three categories: primary (including agriculture), secondary (including manufacturing), and tertiary (including services). Workers in the primary sector directly extract materials from Earth. The secondary sector manufacturers raw materials into goods The tertiary sector involves the provision of goods and services, retailing, banking, law, education, and government.

Quaternary Sector The quaternary sector involves activities such as research and development. Lumber - example With your shoulder partner take the raw material – cotton – and decide how it would be used in each of the 4 economic sectors.

Econ Indicator: Employment Changes by Sector Fig. 9-3: Percentage employment in the primary, secondary, and tertiary sectors of MDCs has changed dramatically, but change has been slower in LDCs.

Econ Indicator: Telephones per Population Fig. 9-4: Mean telephone lines per 100 persons, 2002. MDCs have several dozen phone lines per 100 persons, while the poorer developing countries may have less than 10.

Social Indicators of Development More developed countries use part of their greater wealth to provide schools, hospitals, and welfare services. In turn, this well-educated, healthy, and secure population can be more economically productive.

Social Indicator: Student-Teacher Ratios Fig. 9-5: Students per teacher, primary school level. Primary school teachers have much larger class sizes in LDCs than in MDCs, partly because of the large numbers of young people in the population (Fig. 2-15).

Social Indicator: Persons per Physician Fig. 9-6: There is a physician for every 500 or fewer people in most MDCs, while thousands of people share a doctor on average in LDCs.

Demographic Indicators: BR, DR, and NRI

Demo Indicator: Infant Mortality Rates Fig. 2-10: The infant mortality rate is the number of infant deaths per 1,000 live births per year. The highest infant mortality rates are found in some of the poorest countries of Africa and Asia.

About 90 percent of infants survive About 90 percent of infants survive. . . in less developed countries, whereas in MDCs more than 99 percent survive. The infant mortality rate is greater in the LDCs for several reasons: . . . malnutrition or lack of medicine. . . (or) poor medical practices.

Demo Indicator: Life Expectancy Fig. 2-11: Life expectancy at birth is the average number of years a newborn infant can expect to live. The highest life expectancies are generally in the wealthiest countries, and the lowest in the poorest countries.

The U.N. HDI utilizes life expectancy as a measure of development. Other demographic characteristics that distinguish more and less developed countries include infant mortality, natural increase, and crude birth rates. Babies born today can expect to live into their early forties in less developed countries compared to their mid-seventies in more developed countries. The gap in life expectancy is greater for females than for males. With longer life expectancies, MDCs have a higher percentage of elderly people who have retired and receive public support.

Key Issue 2 More and Less Developed Regions More developed regions Anglo-America – Western Europe Eastern Europe – Japan South Pacific Less developed regions Latin America – East Asia Southeast Asia – Middle East South Asia – Sub-Saharan Africa

More and Less Developed Regions 0.78 0.94 0.92 0.93 0.72 0.66 0.58 0.71 0.78 0.47 0.93 Fig. 9-8: The less developed regions include Latin America, Sub-Saharan Africa, Middle East, South Asia, East Asia, and Southeast Asia.

Anglo-America Relative homogeneity Isolation Connection to trade While there are people from around the globe w/ all belief systems, compared to other regions it is relatively homogeneous culturally, linguistically, and religiously. Isolation Two oceans No major threats from N or S Connection to trade Two ocean access Major land routes N and S Major producer Only region that could significantly expand agricultural output Major Consumer Why significant? Other?

Western Europe Today, relative economic and cultural unity Isolation Mainly since end of WWII Increasingly, culturally unified around “ideals” similar to US Core and Periphery W & N Europe core S & E Periphery Isolation Connection to Trade Major Producer High tech, banking services, industrial manufacturing Has little in the way of raw materials, must import them from LDCs Major Consumer Other?

Eastern Europe Heterogeneous Population Nationalism in newly formed countries may be a block to cooperation w/in region Ethnic diversity in Balkans, especially in Bosnia, Croatia, Serbia (and Kosovo), Montenegro Isolation – nope, traditionally a crossroads Connection to Trade By sea, limited except for Balkans and Baltics Rivers serve as major transports, especially Danube Major Producer was when dominated or controlled by USSR Only region to experience drop in HDI Transition to market economies from communist economies proving difficult Legacy of environmental problems b/c of USSR’s focus on industry at any cost Growing today, has educated workforce and abundant raw materials (Russia) Major Consumer Other?

Air Pollution in Eastern Europe Fig. 9-1-1: Sulfate emissions in the Czech Republic and Slovakia. GIS was used to map previously secret data on air pollution after the fall of the communist regime. Extremely high levels were found in some of the main industrial areas.

Japan: The exception to the rule. Disadvantages Rather Isolated Few natural resources Little iron, coal, oil One of the highest physiological densities But… it had Willingness to sacrifice (homogeneous population helped) Cheap labor Gov’t willing to support industries And the U.S. Combination gave it edge to overcome obstacles

South Pacific One would think that they would be LDCs But… Isolation from world markets But… Low population compared to resources Homogeneous populations Australia and New Zealand have benefited from their close ties to UK

Why are the other regions of the world less developed Why are the other regions of the world less developed? Choose one region and discuss with your shoulder partner. Lat. Am. N. Africa & Middle East Sub-Saharan Africa S. Asia E. Asia SE Asia What sets these regions apart? Geographical Reasons? Political Reasons? Resources?

Use the packet, the text, and your knowledge of geography to: Generally describe your region. Major countries in region Population clusters Any information that can help flesh out our understanding of what the region is like Identify reasons for why the region is considered less developed. Organize your reasons into categories, for example: Political Social Economic Geographic

Minerals in Africa Fig. 9-9: Although several African countries have important minerals, the world prices of many of these have lagged the prices of industrial products, services, and energy.

Mineral Resources

Key Issue 3: Development and Gender I. Gender-related development index (GDI) A. Economic indicator of gender differences B. Social indicators of gender differences C. Demographic indicator of gender differences II. Gender Empowerment Measure (GEM) A. Economic indicators of empowerment B. Political indicators of empowerment

GDI Same measurements as HDI Economic- gdp per capita Social- literacy and education Demographic- life expectancy UN penalizes country’s with low GDI highest= Norway

Gender-Related Development Index (GDI) Fig. 9-10: The GDI combines four measures of development, reduced by the degree of disparity between males and females.

Female–Male Income Differences Fig. 9-11: Women’s income is lower than men’s in all countries, but the gender gap is especially high in parts of the Middle East, South Asia, and Latin America.

2010 in USA Women earned $ .77 to every men’s $1.00 Why?????

Gender Differences in School Enrollment Fig. 9-12: As many or more girls than boys are enrolled in school in more developed countries, but fewer girls than boys are enrolled in many LDCs.

Female Literacy Rates Fig. 9-13a: Female literacy is lower than male literacy (Fig. 9-13b) in many LDCs, with significant gender gaps in parts of the Middle East, Africa, and South Asia.

Male Literacy Rates Fig. 9-13b: There is a gap in literacy rates between MDCs and LDCs as well as between men and women in many LDCs.

Life Expectancy and Gender Fig. 9-14: Women’s life expectancy is several years longer than men’s in MDCs, but only slightly longer in many LDCs.

G E M Gender Empowerment Measure The ability of women to participate in political and economic processes. Indicators: Economic- income and professional jobs Political- elected and managerial jobs

Gender Empowerment Measure (GEM) Fig. 9-15: The GEM combines two measures of economic power and two of political power by women. (Little data are available for LDCs.)

Women Professional and Technical Workers Fig 9-16: Half or more of professional and technical workers are women in most MDCs and some LDCs, such as Brazil, but only a small proportion are women in most LDCs.

Women Administrators and Managers Fig. 9-17: More than one-third of top administrators are women in North America and some other MDCs and LDCs, but 20% or fewer top administrators are women in many other countries.

Women as Legislators Fig 9-18: Over 20% of legislative seats are held by women in China, some European nations, and several LDCs. In many other LDCs, under 10% are held by women.

Make a multi-flow map as an exit ticket today. Event: a country’s GDI increases List causes and effects in boxes, creating a multi-flow map

Multi-Flow Map EFFECTS CAUSES A country’s GDI increases

Key Issue 4: why do less developed countries face obstacles to development? I. Two methods/approaches for LDC’s follow to develop: A. Development through self-sufficiency Elements of self-sufficiency approach Problems with self-sufficiency B. Development through international trade Rostow’s development model Examples of international trade approach Problems with international trade II. Financing development

Income and Demographic Change, 1980–2004 Fig. 9-19: Per capita GDP has increased more in MDCs than in LDCs during this period, while population growth and infant mortality have declined more rapidly in MDCs than in LDCs.

What is infrastructure? Transportation: highways, airports, RRs Communication: cellphones, internet access, etc. Basic Utilities: electricity grids, water systems, etc.

Self-Sufficiency Approach Also known as “balanced growth” Elements Country spreads investment equally across all sectors and regions of its economy High tariffs protect domestic industries Price supports (subsidies) for farmers Reducing poverty is primary goal Problems Inefficiency Large (and expensive) bureaucracies

Self-Sufficiency Approach (cont.) China, India, African countries, and Eastern European countries have used it Focus: India Adopted S-S approach after independence in 1947 Gov’t protected business and farmers encouraged India companies to produce for domestic market instead of relying on imports (import substitution) If business couldn’t make a profit, gov’t helped by providing subsidies like cheap electricity or paying off debt owned communications, transportation, and power companies (a common feature in LDCs) but also other companies like insurance and automakers

Self-Sufficiency Approach (cont.) Problems for India w/ S-S approach Poor quality of domestic production Gov’t provided most of the jobs Gov’t wanted to insure most had a job to help cut poverty rate Created laws that made it difficult to fire bad workers Gov’t made it difficult to get foreign investment Foreign companies could not compete w/ domestic companies Foreign companies had to go through lengthy process to get license to do business in India Result of S-S Approach Little economic growth (2 to 4%) b/t 1947 and 1980s Little reduction in poverty Huge problems w/ corruption Huge increase in gov’t debt

International Trade Approach Country decides what it can do best Instead of spreading investment out to all sectors like in the S-S approach Focus investment in one or two industries that it can then use to sell to other nations Idea is that profits from industries can be invested into other areas

International Trade Approach (cont.) Rostow’s Development Model Five stage model – all countries move through stages Assumptions he made An LDC typically has one or two raw materials in abundance or an abundance of cheap labor This is from where the “seed money” comes Increased development of MDCs would make raw materials more valuable He bases his ideas experience of W. Europe, E. Europe, and Japan

International Trade Approach (cont.) Pluses to Rostow’s Dev. Model Country gains expertise in an industry or product Uses profits to expand gov’t services like education, health care, infrastructure expand in other businesses

Rostow’s Dev. Model 1. Traditional society High % of labor force in agri Output consumed by producers (subsistence) Wealth used for “nonproductive” activities Military Religion (he is not anti-religion; he just doesn’t believe religious institutions create jobs that help a country develop)

Rostow’s Dev. Model 2. Preconditions for takeoff Elite group initiate innovative econ activities Investment in new tech and infrastructure for specific industry Goal is to prepare this industry to compete in world markets

Rostow’s Dev. Model 3. Takeoff Rapid growth in area of investment Industry develops Infrastructure develops to support it Labor force moves from farming to urban manufacturing Rest of econ still traditional

Rostow’s Dev. Model 4. Drive to Maturity Modern tech diffuse to wide variety of industries Making more industries better able to compete in world market Education and skills diffused to wide segments of population Entrepreneur class beginning to generate and operate on own

Rostow’s Dev. Model 5. Age of Mass consumption Shift of econ from heavy industry to consumer goods Country is now developed

Thursday 02-17-11 On your desk: Ch 9 notes TEST TOMORROW!!!! Review time

Limitations of Rostow’s Dev Model Raising the $ to begin the process Gov’t often have to cut social services Gov’t often has to cut taxes on wealthy so they can have $ to invest First action can lead to political instability Second action assumes wealthy will invest Setting up a country to be dependent on loans If savings of gov’t or elite is not sufficient, must be made up for w/ loans Country can stall in Stage 3 Insufficient $ for expanded investment Loans must be used to cover gap b/t savings and $ needed

Debt as Percent of Income Fig. 9-20: Many developing countries have accumulated large debts relative to their GDPs. Much of their budgets now must be used to finance their debt.

US experience Book claims that US used International trade model Mr. Lucas disagrees Agri goods were exported, but $ raised not used to great extent for infrastructure improvements or industrial expansion Industries expanded in US during times of isolation Revolution and War of 1812 European conflicts restricted their export of manufactured goods History of high protective tariffs until 1940s Gov’t subsidized industry, agriculture, and services through sale & give away of western lands

Better Examples of International Trade Approach Persian Gulf States Four Asian Dragons

Recent Triumph of International Trade Approach Despite problems w/ international trade approach (ITA), more countries are adopting it Why? Past 25 yrs, world trade has tripled Increased interconnectedness of world India good example: Since adopting ITA in 1990, GDP has grown 7% per year as opposed to 2 – 4% per year w/ S-S Approach

Efforts to promote world trade World Trade Organization (WTO) Begun in 1995 Over 150 countries are members

WTO (cont.) Function of WTO Works w/ countries to reduce barriers to international trade Enforces agreements reached between countries Check out the current dispute b/t the US and China http://www.channelnewsasia.com/stories/afp_world_business/view/269567/1/.html

Criticism of WTO Liberals Claim WTO is antidemocratic Claim WTO only represents the interests of richest countries IOW: Free trade policies hurt smaller and poorer companies and farmers by making them compete w/ rest of world

Criticism of WTO Conservatives Claim WTO compromises power and sovereignty of individual countries WTO can demand that a country change its laws if it finds that a countries policies violate agreements

Financing Development Regardless if countries follows S-SA or ITA, LDCs lack the $$ to finance development What are an LDCs options? Loans Usually from Commercial banks (Wells Fargo, Bank of America, Chase Manhattan) the International Monetary Fund (IMF) or the World Bank Critics charge that these institutions are controlled by MDCs and set up unfair loans that are difficult for poorer countries to repay Foreign Investment Transnational corporations build factories or set up part of their business in another country Example: Dell has factories or offices in India, China, and Chile to name a few.

Foreign Investment Flows Host economies are countries that receive investment. Fig. 9-21: Three-quarters of foreign investment flows from one MDC to another. Only one-quarter goes from an MDC to an LDC. China, Mexico, and Brazil receive 50% of all foreign investment going to LDCs .

Core and Periphery in World Economy Gives a new meaning to “top of the world.” Fig. 9-22: This north polar projection of the world shows that most of the MDCs are in a core area north of 30° N latitude. The LDCs are mostly on the periphery of this map.

OECD Organization for Economic Cooperation and Development Formed in 1948 to help rebuild Europe after WWII and direct spending of $$ from the Marshall Plan Members: Most European nations, US, Canada, Mex., Japan, Turkey, Australia, and New Zealand