International Development EQ’s For Development 1) Why does development vary among countries? 2) Where are more and less developed countries distributed? 3) How does development affect gender? 4) Why do LDC’s face obstacles to development? The single most important geographic fact of development is its striking UNEVENNESS.

What Do We Mean By Development? Let’s review… §The three objectives of development l increases in availability and improvements in the distribution of food, shelter, health, protection, etc. l improvements in ‘levels of living,’ including higher incomes, more jobs, better education, etc. l expansions in the range of economic and social choices available to individuals and nations

Measuring Development - HDI United Nations Development Program Overview 2005 Click for Animated Graphs Click for Animated Graphs §Economic Indicators l Gross Domestic Product (GDP, also GNIPP) l Types of Work (Economic Sectors) §Social Indicators l Education and Literacy l Health and Welfare §Demographic Indicators l Life Expectancy ( years) l Infant Mortality ( 100 per thousand) l Natural Increase ( %)

Rank HDI Index Life ExpectancyAdult LiteracyGDP (US$) Arab States ,611 East Asia and the Pacific ,512 Latin America / Caribbean ,275 South Asia Sub-Saharan Africa OECD na25,750 World na5,801 High Human Development 1 Norway , United States , Japan , Slovakia , Costa Rica , Mexico ,121 Medium Human Development 75 Venezuela , Armenia Philippines Turkey , Viet Nam Uganda Low Human Development 159 Rwanda Zambia

New International Division of Labor

Measuring Development §Social Indicators l Education and Literacy

Measuring Development §Social Indicators l Health and Welfare

Location of More and Less Developed Countries Development generally reflects a North-South split in the world.

Strategies for International Development §Self-Sufficiency Model (Balanced Growth) l Spread investment as equally as possible. l Set barriers that limit imports/ limit international trade. l Mexico and India l Problems = Inefficiency/ lack of advancement and large bureaucracy. §International Trade Model (Economic Growth) l Rostow’s Model l World Bank lending §Basic Needs Model/Appropriate Technology Model l Microlending (Grameen Bank, Kiva.org)Grameen BankKiva.org §Revolutionary/Radical Reform Model l Cuba, U.S.S.R

Institutions of International Development §United Nations - formed in 1945 to promote peace. 189 current members. §World Bank - financial assistance and loans. Owned by 189 United Nations members. §International Monetary Fund - arm of U.N. that surveys and oversees international money exchange to prevent monetary crises. Also provides loans and training to help countries with balance of payment problems. §Non-Governmental Organizations (NGOs) - World Watch, Human Rights Watch, World Commission on Dams, Grameen Bank, Kiva.org, many others.

Rostow’s Model American economist and political advisor during 1950s developed model, arguing that each country passes through five stages from traditional society to high mass consumption.  TRADITIONAL SOCIETY – Dev. not started yet  PRECONDITIONS FOR TAKE-OFF - elite group initiates economic innovations, leads to productivity and investments in infrastructure.  TAKE-OFF - rapid growth in a number of specific economic activities, technical advances.  DRIVE TO MATURITY - Modern technology diffuses to a wide variety of industries.  AGE OF MASS CONSUMPTION - economy shifts from heavy industry (steel) to consumer goods (cars).

Examples of Int’l Trade Approach §Four Asian Dragons l Lacking resources, they concentrated on manufactured goods. l South Korea, Singapore, Taiwan, and Hong Kong. §Arabian Peninsula States l Petroleum rich. l Used revenue to fund large scale projects.

Problem’s with Rostow’s Model and the International Trade Approach Developmentalism : the idea that every country and region will eventually make economic progress toward “high mass consumption” provided that they compete to the best of their ability. This is not likely and is hard on the planet. Increased dependence on MDCs and their markets. Undue influence on many global policies, including those of the U.N. and World Bank. Market Stagnation: counting on selling to MDC’s can be risky… MDCs have very limited population growth. May force LDC’s to cut back on production of food, clothing, and other necessities.

Other Problems in International Development §High Debt Countries §Hostility Regarding World Bank and IMF Structural Adjustment Programs l IMF “Free Market” Requirements for Loans and Assistance §Warfare and Instability Limit Foreign Investment §Core-Periphery Relationships May Be Necessary for Economic Growth l Within Countries l Globally

High Debt Countries Loans to LDCs by 2000 exceeded $2.1 trillion dollars. Interest payments consume some small economies, encouraging export earnings instead of internal improvements.

Warfare and Instability Limit Foreign Investment

Progress Towards Development NIR = Natural Increase Rate IMR = Infant Mortality Rate