November 18, 2013 Ch. 9 Key Issue 1 BW- What is Development?????? Upon answering question, students will review and watch- “The Science of Overpopulation” -How does this affect development????

VACATION Where would we like to go on vacation? Preferably a popular, yet less-developed destination What makes this an attractive destination? Amenities, climate, scenery, food/lodging $ Are the people who live in this place year-round fortunate to live at such a desirable location? What do the local people depend on for income? What do the people in this country who do not live in a tourist area do for work? Can any of these people who want to vacation in the US come? Why/why not?

A world divided The world is divided by relatively rich and relatively poor countries We will try to understand the reasons for this division and learn what can be done about it Caribbean island vacation Who works at the resorts? What is life like surrounding the resort? How would you feel?

What is Development? November 18, 2013 The process of improving the material conditions of people through the diffusion of knowledge and technology More developed countries (MDCs) AKA developed countries Lesser developed countries (LDCs) AKA emerging or developing countries

Course Outline VI.Industrialization and Economic Development 13–17% A.Growth and diffusion of industrialization 1.The changing roles of energy and technology 2.Industrial Revolution 3.Evolution of economic cores and peripheries 4.Geographic critiques of models of economic localization (i.e., bid rent, comparative costs of transportation), industrial location, economic development, and world systems

Content Area section) B.Contemporary patterns and impacts of industrialization and development 1.Spatial organization of the world economy 2.Variations in levels of development 3.Deindustrialization and economic restructuring 4.Globalization and international division of labor 5.Natural resources and environmental concerns 6.Sustainable development 7.Local development initiatives: government policies 8.Women in development

ECONOMIC INDICATORS OF DEVELOPMENT 5 factors: Most important GDP Economic structure, worker productivity, access to raw materials, and availability of consumer goods GDP PER CAPITA MDC: $15 per hour LDC: $2 per hour GDP: value of the total output of goods & services produced in a country Divide GDP by population = contribution made by the ave individual toward generating a countries wealth in a year

Types of jobs Jobs fall into 3 categories: Primary, Secondary, Tertiary Comparing types of economic activities in MDC/LDC Look at the % of people working in each category Primary sector: directly extract materials from E Via farming, mining, fishing, foresting Secondary: process, transform, and assemble raw materials into useful products Tertiary: provision of goods in exchange of $ Retail, banking, law, education, & gov’t

Economic indicators of development Economic activities: Primary sector Secondary sector Tertiary sector: Quaternary, Quinary The slide shows how economic activities are divided in a country. A less developed country has a higher percentage of primary economic activities, people working in agriculture, subsistence farming. Also, in urban areas and MDCs, More developed countries, there is a higher percentage of tertiary economic activities. This also includes quaternary activities and quinary activities. Sometimes geographers separate these into their own categories but many will keep them as sub-categories of tertiary activities.

Productivity Productivity: value of a product compared to amount of labor needed to make it Value added: gross value of the product – the cost of raw materials and energy ~$80k US, $70k Japan, $1k China, $500 India Workers in MDCs produce more w/ less effort More machines, tools, equipment, etc. MDC workers are more productive

Raw materials Development requires raw materials & energy sources Iron Ore and Coal help transform UK in late 18th C Resources depleted, est. colonies to import more Specific raw materials become important bring dvlpmt If an LDC has oil, they may develop to an MDC A country’s abundance of resources=chance of dvlpmt Exceptions to that rule Japan, Singapore, S.Korea, and Switzerland Success through world trade

Consumer goods MDC: goods & services devoted to transp & comm. Vehicles, phones, computers Helps provide access to jobs & spreads info More leisure activities available LDC: Not as concerned with tech. advances “Haves” and “Have nots” Spread from urban to rural Connecting MDCs and LDCs through technology

How is development measured? Social indicators of development Education and literacy The literacy rate Health and welfare Diet (adequate calories) Access to health care

How is development measured? Demographic indicators of development Life expectancy Babies born today in MDCs have a life expectancy in the 70s; babies born in LDCs, in the 60s Other demographic indicators: Infant mortality Natural increase Crude birth rate

Education & Literacy More developed=^quantity and quality the edu. Quantity=ave # of school years attended Quality=student/teacher ratio and literacy rate Literacy rate: % of people who can read/write MDCs=98% LDC=60% MDC=10 years in school LDC=a few MDC: student/teacher ratio is 2x higher than LDC

Student-Teacher Ratios 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 (Also, refer to Fig. 2-15).

Persons per Physician There is a physician for every 500 or fewer people in most MDCs, while thousands of people share a doctor on average in LDCs. Especially in rural areas. Urban areas tend to be much better served.

In LDCs, the average person gets only the minimum requirement or less. Calories per Capita Daily available calories per capita as percent of requirements. In MDCs, the average person consumes one-third or more over the required average minimum, which accounts for the obesity found in North America and some affluent countries. In LDCs, the average person gets only the minimum requirement or less.

US RANKINGS 1st economically 17th in education 1st in crime 28th math 18th reading 22nd science 1st in crime 1st incarceration 24th homicide 1st obesity 19th democratic freedoms

November 19, 2013 MDC v. LDC- Activity Students will be placed in areas of the room labeled MDC and LDC based on accurate world population percentages. As a class determine the percentage of the world’s population that lives in each section. Students will be based on an individual country. For example, 2 of the 5 students in MDC might be labeled U.S.A. Discuss results. Was the outcome what you expected? Any surprises? What does it mean to be developed as a country?

Where are MDCs and LDCs Distributed? More developed regions North America and Europe Other MDCs with high HDI = Russia, Japan, Australia, and New Zealand Less developed regions Latin America = highest HDI among LDCs Southwest Asia, Southeast Asia, Central Asia = similar HDI South Asia and sub-Saharan Africa = low levels of development

Location of more/less developed countries Countries are categorized into 9 regions Based on their development Japan and South Pacific aren’t part of the 9 North-south Split Circle the earth at 30º Above 30º=MDC (for the most part) South=LDC

More and Less Developed Regions Figure 9-10

Today in Class: Students will color and label on maps, where the MDCs and LDCs are located. Students will work on worksheet, comparing LDCs and MDCs.

More Developed regions ANGLO-AMERICA (HDI .94) USA/CANADA English 1st lang. & most adhere to Christianity Some cultural tension (race and religion) Abundance of natural resources (decline of manu) Leader in financial, mgmt, & high tech services Big promoter and supplier of entertainment/leisure World’s most important food exporter

More developed regions WESTERN EUROPE (HDI .93) Indo-European languages & Christianity Conflict arise over cultural identities Competition among nationalities causes WWI & WWII Influx of Muslims and Hindus spark pop growth Highest level of development (exclude S Italy, Portugal, Spain and Greece) Importers of food, energy minerals Worlds largest and richest economic market

More developed regions EASTERN EUROPE (HDI .80) Only region to decline since UN created the index in ’90 Declining to Latin American level (LDC) due to communism “Iron Curtain” 15º E longitude Initially mass increase in per capita GDP ($100s1000s) Communism didn’t cater to poor/agricultural societies Gosplan: 5 year, 3 step economic plan 1st: heavy industry-iron, steel, machine tools, weapons 2nd: disperse production to the east (= development) 3rd: Locate manu facilities near resources, not markets

Iron curtain

More developed regions EASTERN EUROPE (HDI .80) Abandon communist economic structure Outdated equip, import food, impossible targets, Lacked basic industry needs: clothes, cars, housing Eastern Countries bordering W Europe Easier transition to the market economy

More developed regions JAPAN (HDI .94) Remarkable development despite natural resources A world leader in steel prod. yet imports all coal and iron 1 asset: abundance of ppl willing to work for low wages Sell product overseas for cheaper than domestic co. THEN specialize in high-valued products: electronics Spend 2x more on R&D than the U.S. Rigorous edu & training programs for skilled labor

More developed regions SOUTH PACIFIC (HDI .87) High HDI but not as relative in global econ. Smaller pop Comparable to most other MDC HDIs

Bellwork: 11/21 What does Gender Inequality mean?

Today in Class: There will be a physical features map quiz of Africa. Next, we will head to the computer lab to look at HDI information.

11/22- Today in class Students will work on HDI assignment- referencing cia.gov.

Human Development Index: HDI http://hdr.undp.org/en/statistics/hdi/ The Human Development Index, or HDI, has three dimensions and four indicators. It is similar from the index in the past except they have changed the education indicators. It used to have literacy rate and school enrollment but they know now that students will enroll and will not attend. You can see how it has changed now. The expected amount of education attended and what the average actual number is for the country. Also, they used to use GDP per capita. Now they use the Gross national income. This divides the GNP, the total amount of goods and services globally produced by the country divided by the population. These are more accurate indicators…

Human Development Index HDI

As before, the bottom of the index is monopolized by Less Developed Countries…the top used to be monopolized by Western European countries. Now you can see the difference.

HDI only includes income from the formal market HDI only includes income from the formal market. Reported to the government, pay taxes. Formal Market: Ecuador Informal Market: Ecuador

Informal Market: Brazil HDI does not include income from the informal market. Not reported to the government, no taxes paid. Formal Market: Brazil Informal Market: Brazil

BELLWORK: 12/2 Students will watch TED TALK, what does the Washing Machine symbolize?

http://www.gapminder.org/videos/hans-rosling-and-the-magic-washing-machine/

MODELS of DEVELOPMENT

ROSTOW and His Model The work of American Walt W. Rostow Rostow is an economic historian Countries can be placed in one of five categories in terms of its stage of growth

How do countries develop? If we can understand how development occurs, strategies can be adopted to help countries to develop

STUDENTS Will Create a Matrix of Rostow’s Stages of Development Traditional Society Characterised by subsistence economy – output not traded or recorded existence of barter high levels of agriculture and labour intensive agriculture

2. Pre-conditions: Development of mining industries Increase in capital use in agriculture Necessity of external funding Some growth in savings and investment

3. Take off: Increasing industrialisation Further growth in savings and investment Some regional growth Number employed in agriculture declines

4. Drive to Maturity: Growth becomes self-sustaining – wealth generation enables further investment in value adding industry and development Industry more diversified Increase in levels of technology utilised

5. High mass consumption High output levels Mass consumption of consumer durables High proportion of employment in service sector

Country Analysis and Comparisson http://www.bized.co.uk/educators/16-19/economics/development/activity/models.htm

Models of Development: Market Based

Models of Development Rostow: International Trade Approach This is the Rostow model of development. The Traditional Society is a basic agricultural society. If you use the U.S. for an example, the traditional society would be when we were a plantation society, the 13 colonies, etc. Pre-conditions for take off would be before our Industrial Revolution in the 1800s. This step is when your country is in stage 2 of the demographic transition model and infrastructure is in the process of construction. Take Off is the Industrial Revolution. Factories are in full-swing, secondary economic activities are in process and manufacturing is widespread. The drive to maturity would be stages 3 where tertiary activities become widespread and the last stage would be stage 4 in the DTM, post-industrial, quaternary and quinary activities are taking place.

International Trade Approach

Models of Development Development through self-sufficiency Characteristics: Pace of development = modest Distribution of development = even Barriers are established to protect local business Three most common barriers = (1) tariffs, (2) quotas, and (3) restricting the number of importers Two major problems with this approach: Inefficient businesses are protected A large bureaucracy is developed

Development through international trade Examples of international trade approach The “four Asian dragons”: Singapore, Hong Kong, Taiwan, South Korea Petroleum-rich Arabian Peninsula states Semi-Peripheral States Three major problems: Uneven resource distribution Increased dependence on MDCs Market decline

International Trade Approach

Models of Economic Development Wallerstein’s World System Analysis 1. Core: High Income High use of technology High % of tertiary activities High levels of Education by the majority of the population OECD countries G8 2. Semi-Periphery: used to be peripheral states Increased economic development BRICS 3. Periphery: Low Income Low use of technology High % of primary activities Low levels of education by the majority of the population

Core and Periphery Model: North South Divide Many people think the global economy can be divided between the northern and southern hemisphere. MDCs would mostly be in the north and LDCs mostly in the south excluding Australia, New Zealand, and many South Pacific Island countries.

BRICS: Brazil, Russia, India, China South Africa added in 2010 G8: Top State economies Canada, France, Germany, Italy, U.K., U.S.(Core) Mexico recently admitted (semi-periphery) BRICS: Brazil, Russia, India, China and now South Africa. This is an acronym that is used to describe countries with economies that have grown quickly and have become successful in the global community. These are semi-peripheral countries. G8 are MDCs which also include Mexico. That is why Mexico is not included in BRICS. Please remember these groups are human constructs and then take-off and are used commonly so people incorporate them in political and economic language.

BRICS: Semi-Peripheral States

Core-Periphery on a national scale I used these three maps to show core with the high GDP areas, semi-peripheral as middle GDP and peripheral as low GDP. Notice that on all three maps that the core can be in different regions of the country compared to another one. China’s core area is on the south-eastern coast where the Special Economic Zone exists, the semi-peripheral area is the earlier manufacturing area and the periphery is in the rural areas, some where mountains and deserts exist.

The core area is where the capital used to exist and the forward district is where the capital was moved to the interior to level out population from the densely populated coastal area. It is Brasilia. The peripheral area in the north has tourism but also a new growth of manufacturing and an oil industry.

In Mexico the core areas are based on tourism or maquiladora regions along the coast with the U.S. These are factories that are U.S. owned that used cheaper Mexican labor to assemble goods to transport across the border due to NAFTA.

What is being done to increase development now What is being done to increase development now? United Nations Millennium Development Goals In 2000 countries came together to develop the Millennium Development Goals through the United Nations. There are 8 goals with many targets to achieve. If you go to this site, click on one of the 8 in the red menu on the right side and you will see all the target goals for each one. These were supposed to be accomplished by 2015. It is a global effort.

December 3, 2013 http://www.youtube.com/watch?v=jbkSRLYSojo

Students will read article: 12/3 Fair Trade and the Food Movement http://freakonomics.com/2010/06/30/fair-trade-and-the-food-movement/?_r=0

Why Do LDCs Face Obstacles to Development? Development through self-sufficiency Characteristics: Pace of development = modest Distribution of development = even Barriers are established to protect local business Three most common barriers = (1) tariffs, (2) quotas, and (3) restricting the number of importers Two major problems with this approach: Inefficient businesses are protected A large bureaucracy is developed

Why Do LDCs Face Obstacles to Development? Development through international trade Rostow’s model of development Examples of international trade approach The “four Asian dragons” Petroleum-rich Arabian Peninsula states Three major problems: Uneven resource distribution Increased dependence on MDCs Market decline

Why Do LDCs Face Obstacles to Development? International trade approach triumphs The path most commonly selected by the end of the twentieth century Countries convert because evidence indicates that international trade is the more effective path toward development Example: India World Trade Organization Foreign direct investment

Triumph of International Trade Approach Figure 9-28 Figure 9-27

Foreign Direct Investment Figure 9-30

Why Do LDCs Face Obstacles to Development? Financing development LDCs require money to fund development Two sources of funds: Loans The World Bank and the IMF Structural adjustment programs Foreign direct investment from transnational corporations

Debt as a Percentage of Income Figure 9-31

Why Do LDCs Face Obstacles to Development? Fair trade approach Products are made and traded in a way that protects workers and small businesses in LDCs Two sets of standards Fair trade producer standards Fair trade worker standards Producers and workers usually earn more Consumers usually pay higher prices

DECEMBER 3, 2013: In- Class Review Day