The Cultural Landscape: An Introduction to Human Geography Chapter 9: Development The Cultural Landscape: An Introduction to Human Geography

warm up What are the 3 sectors of the economy? Give 2 actual examples of each sector.

Development The process of improving the material conditions of people through the diffusion of knowledge and technology More developed countries (MDCs) AKA developed countries, Core Countries Newly Industrialized Countries (NICs) AKA semi-periphery countries Lesser developed countries (LDCs) AKA emerging or developing countries, periphery

Why Does Development Vary Between Countries? Economic indicators of development The Human Development Index (HDI) Four factors used to assess a country’s level of development: Economic = (1) gross domestic product (GDP) per capita Social = (2) literacy and (3) amount of education Demographic = (4) life expectancy

Human Development Index Figure 9-1

Why Does Development Vary Among Countries? Economic indicators of development Types of jobs Primary sector Secondary sector Tertiary sector Quaternary sector (knowledge-based: IT, consultation, education, R&D) ?Quinary sector? (health, culture, and research) Productivity Measured by the value added per capita MDCs are more productive than LDCs Consumer goods (final product)

Money-making activities Economic Geography Money-making activities

Primary activities Any activity where a natural resource (raw material) is used directly for profit. Farming Fishing Mining Logging

Secondary activities When raw materials are taken to produce or manufacture a product. Iron and Coal (extracted – primary) produces Steel Steel produces thousands of parts for machinery of all kinds. (automobiles) Cotton is harvested (primary) Taken to a factory and made into clothes

Tertiary (Service) activities Anything that provides a product or service to the public. Largest sector of an MDC country today. Banking, education, medicine, retail or wholesale sales, food service, military, insurance, entertainment

Quaternary Sector (a branch of the Tertiary Sector) Involves the collection, processing, and manipulation of information. Engineering Research and development Information technology Software Web design Support

Quinary Sector (a further branch of the Tertiary Sector, Quaternary) The quinary sector of the economy is defined by some to as the highest level of intellectual efforts. Health Culture Research Politics

Motor Vehicles Per 1,000 Persons Figure 9-4

Why Does Development Vary Among Countries? Social indicators of development Education and literacy The literacy rate LDCs frequently have more students per teacher Health and welfare Diet (adequate calories) Access to health care

Students Per Teacher, Primary School Figure 9-6

Why Does Development Vary Among Countries? 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

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

More and Less Developed Regions Figure 9-10

Where Does Level of Development Vary by Gender? Gender-Related Development Index (GDI) Compares the level of women’s development with that of both sexes Four measures (similar to HDI): Per capita female incomes as a percentage of male per capita incomes Number of females enrolled in school compared to the number of males Percent of literate females to literate males Life expectancy of females to males

Gender-Related Development Index (GDI) Figure 9-17

Demographic Indicator of Gender Difference: Life Expectancy Figure 9-21

Where Does Level of Development Vary by Gender? Gender Empowerment Measure (GEM) Compares the decision-making capabilities of men and women in politics and economics Uses economic and political indicators: Per capita female incomes as a percentage of male per capita incomes Percentage of technical and professional jobs held by women Percentage of administrative jobs held by women Percentage of women holding national office

Gender Empowerment Measure (GEM) Figure 9-22

Economic Indicator of Empowerment: Professionals Figure 9-23

Progress Toward Development Figure 9-26

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

Paths to Development India’s Self-Sufficiency Model Jawaharlal Nehru: the first Prime Minister of independent India (1947–64) Nehru chose a path that focused on internal development without outside interference. Backlash to years of British control. It was based on isolation and a system of high tariffs and quotas. Discouraged exports and instead focused on producing for internal consumption.

Paths to Development India’s Self-Sufficiency Model Government controlled prices created monopolies and this led to inefficiency. A complex bureaucracy led to a reduction in entrepreneurship. Since the early 1990’s open market reforms have led to rapid increase in development.

Why Do LDCs Face Obstacles to Development? Development through international trade China’s Market Socialist model 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

International Trade Approach China’s Market Socialist model Central planned economy Gradual approach starting with Special Economic Zones Joint partnerships have led to direct foreign investment. Government backed, slow privatization

Rostow - Stages of Growth 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: A child in Sierra Leone making breakfast. Which stage would a country like Sierra Leone fit in?

Rostow - Stages of Growth Traditional Society Characterised by subsistence economy – output not traded or recorded existence of barter high levels of agriculture and labour intensive agriculture Village in Lesotho. 86% of the resident workforce in Lesotho is engaged in subsistence agriculture.

Rostow - Stages of Growth 2. Pre-conditions: Development of mining industries Increase in capital use in agriculture Necessity of external funding Some growth in savings and investment The use of some capital equipment can help increase productivity and generate small surpluses which can be traded.

Rostow - Stages of Growth 3. Take off: Increasing industrialisation Further growth in savings and investment Some regional growth Number employed in agriculture declines At this stage, industrial growth may be linked to primary industries. The level of technology required will be low.

Rostow - Stages of Growth 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 As the economy matures, technology plays an increasing role in developing high value added products.

Rostow - Stages of Growth 5. High mass consumption High output levels Mass consumption of consumer durables High proportion of employment in service sector Service industry dominates the economy – banking, insurance, finance, marketing, entertainment, leisure and so on.

Criticisms: Too simplistic Necessity of a financial infrastructure to channel any savings that are made into investment Will such investment yield growth? Not necessarily Need for other infrastructure – human resources (education), roads, rail, communications networks Efficiency of use of investment – in palaces or productive activities? Rostow argued economies would learn from one another and reduce the time taken to develop – has this happened?

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

What Is the WTO? The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. WTO agreements are negotiated and signed by the trading nations and ratified in their parliaments. The goal is to help producers of goods and services, exporters, and importers conduct and grow their business.

The Goal To improve the welfare of the peoples of the member countries.

Past, Present, Future The WTO came into being in 1995. The WTO is the successor to the General Agreement on Tariffs and Trade (GATT), established in the wake of the Second World War.

The Past 50 Years: Exceptional Growth in World Trade Merchandise exports grew on average 6% annually Total trade in 1997 was 14 times the level of 1950 In 1997, 40 governments concluded negotiations for tariff free trade.

The Organization Chart

The Quad Some of the most difficult negotiations have needed an initial breakthrough in talks among the four largest members Canada  European union  Japan  United States

Criticisms of the WTO The WTO undermines state sovereignty It undermines representative democracy Member nations are prevented from protecting the environment Members are unable to uphold laws guaranteeing workers’ rights The WTO is controlled by the larger nations The WTO represents the interests of large corporations and wealthy citizens

Some protesters have arguments fully worthy of consideration Some protesters have arguments fully worthy of consideration. They deserve a better venue for hearing than the streets. Nihilistic anarchists usually capture the legal protest, along with, lugubrious labor Luddites, trade terrorists, and… …the clueless

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 much higher prices

Wallerstein’s World System Theory Periphery? Core? Wallerstein’s World System Theory

Core and Periphery Model Polar Projection

The Emergence of the World System The world system is the result of the increasing interdependence of cultures and ecosystems that were once relatively isolated by distance and boundaries. Of particular significance to the development of the world system was the European Age of Discovery, wherein the European sphere of influence began to be exported far beyond its physical boundaries by means of conquest and trade.

Influence of the Capitalist World Economy The defining attribute of capitalism is economic orientation to the world market for profit. Colonial plantation systems led to monocrop production in areas that once had diverse subsistence bases (beginning in the seventeenth century)…PLANTATIONS. Colonial commodities production was oriented toward the European market.

Immanuel Wallerstein Born September 28, 1930 in New York City, is an American sociologist, historical social scientist, and world-systems analyst. His bimonthly commentaries on world affairs are syndicated. Wallerstein first became interested in world affairs as a teenager in New York City, and was particularly interested in the anti-colonial movement in India at the time.

Wallerstein’s World System Theory Wallerstein has argued that international trade has led to the creation of a capitalist world economy in which a social system based on wealth and power differentials extends beyond individual states. The world system is arranged according to influence: core (most dominant), to semi-periphery, to periphery (least dominant). The core consists of the strongest and most powerful nations in which technologically advanced, capital-intensive products are produced and exported to the semi-periphery and the periphery. The semi-periphery consists of industrialized “Third World” nations that lack the power and economic dominance of the core nations (Brazil is a semi-periphery nation). The periphery consists of nations whose economic activities are less mechanized and are primarily concerned with exporting raw materials and agricultural goods to the core and semi-periphery.

Wallerstein’s World Systems Questions FRONT ROW: What was the New European Division of Labor that emerged in the late 15th and early 16th century. SECOND ROW: What was the historical relationship between the Core and the Periphery? THIRD ROW: How are some regions considered “Semi-Periphery” by Wallerstein and what role did they play?

World Systems theory Dependency theory is a body of social science theories predicated on the notion that resources flow from a "periphery" of poor and underdeveloped states to a "core" of wealthy states, enriching the latter at the expense of the former. It is a central contention of dependency theory that poor states are impoverished and rich ones enriched by the way poor states are integrated into the "world system." Dependency theorists like Andre Gunder Frank, were criticised by later Marxists because it only describes the relationship between the core and periphery as a two tier model and doesn’t explain fully. Wallerstein refined Frank’s dependency theory in his World Systems Theory

Four aspects of Wallerstein’s World Systems Theory Developing countries are not exploited by individual countries but by the whole capitalist, profit-seeking system in a Modern World System. The MWS is a unified system of capitalism

Three zones in the MWS i. The core/developed nations – these control world trade and monopolize manufactured goods ii. The semi-peripheral zone e.g. Brazil, South Africa, India, have urban areas like the core but large areas of rural poverty like the periphery iii. The peripheral countries e.g.. Most of Africa – they provide primary products for both the semi periphery and the core

Wallerstein’s model is dynamic (This allows for movement and change). Countries are ‘socially mobile’ they can move in from the periphery into the semi periphery (ex. Asian tigers) or out from the core to the semi periphery (Russia, sometimes...)

While Wallerstein refines Frank’ theory there are still similarities Both show how surplus value created in the periphery is appropriated by the semi periphery and especially the core Both see the origins of exploitation of some countries by others to have originated in slavery, colonialism and neo-colonialism

Modern World System of capitalism is profit seeking The pursuit of profit by capitalism results in exploitation between classes Commodification – everything is turned into a commodity to be bought and sold

Wallerstein’s World Systems Questions FOURTH ROW: What was 1 aspect of Wallerstein’s Stages 1 and 2 of Growth that would help a state grow? What was 1 aspect of Wallerstein’s Stages 3 and 4 of Growth that would help a state grow?

Modern World System of capitalism is profit seeking De-skilling of labor Proletarianization occurs (ie. The nature of call centers?) Wallerstein argues that this process also occurs between nations Karl Marx

Evaluation of World Systems Theory Weaknesses Both Frank and Wallerstein are economically deterministic Wallerstein does not say how capitalism can be overcome as Marx said it would

Evaluation of World Systems Theory Weaknesses Wallerstein does not look at internal factors (ie. mismanagement and corruption in the LDC’s) Methodology is too vague and unscientific, ‘core’ etc cannot be clearly operational zed

Evaluation of World Systems Theory Strengths 1 Wallerstein was one of the first to recognise ‘globalisation’ of the world and the international division of labour as the basis of global inequality

Evaluation of World Systems Theory Strengths Globalisation theorists also show how dependency is not a one way process, there is inter-dependency between the developing and western world. (E.g. economic crisis caused by debt can ripple out and affect core nations – unemployment and destabilisation of western currencies)