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Take notes as needed on the back of this page

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1 Take notes as needed on the back of this page

2 Read only CHECK YOUR OUTLINE…. Industrialization and Economic Development section Content Area VI The addition of three terms to Content Area VI (Industrialization and Economic Development) serves to emphasize important recent concerns in this subcategory of human geography. natural resources and environmental concerns, sustainable development, women in development, Millennium Development Goals, + commodity chains (industrialization – February….) Explanation > Natural resources, environmental concerns, and sustainable development have become mainstream public concerns to which geographers have much to offer. Women in development has also been added to the Topic Outline, reflecting the growing contribution that women play, particularly in LDCs where that role has been more limited in the past, in economic development. References to the Millennium Development Goals and commodity chains are also new in the narrative description of the content areas.

3 2014 FRQ on development Read only 1. Rostow’s five-stage model of economic growth and the core-periphery concept of Wallerstein’s three-part world system theory are two of the more common economic development models. A. Identify and compare three differences between the stages of economic growth and the core-periphery model. B. Use one of the two models to explain the level of economic development in either Mexico or Brazil. C. Give two examples of how the core-periphery concept can be applied below the national scale.

4 Economic development > theories and models
Summarize on the back of your graphic as needed. Economic development > theories and models The most interesting section of the outline…. Development explains everything… Many theories grew out of de-colonization in the 1960’s Geographers tried to explain how economies could become powerful

5 How geography affects development
Colonialism – made colonies (Asia, Africa…) economically, socially, politically dependent on European colonizers in particular Economic, social and political linkages still exist (UK > Australia, Canada…) Neo-colonialism – even though poor countries are independent politically, core/MCD countries still control their economies (UK > Kenya…etc) LDC vs MDC issues Summarize Development has to be studied in context and at a variety of scales concurrently - Locally Regionally globally

6 Can eco development or lack of dev.
Rostow’s Development/modernization Model (development thru international trade) Summarize Proposed in the late 1950’s and early 1960’s by economist W.W. Rostow. >> The model is a generalization about the economic development of capitalist states, on the basis of the European experiences. Can eco development or lack of dev. be explained by Rostow??????

7 Rostow's Stages of Development Walt Whitman Rostow (1916- 2003)
Read only Rostow's Stages of Development Walt Whitman Rostow ( ) In 1960, the American Economic Historian, W. W. Rostow, suggested that countries passed through five stages of economic development. Stage 1 -- Traditional Society The economy is dominated by subsistence activity where output is consumed by producers rather than traded. Any trade is carried out by barter where goods are exchanged directly for other goods. Agriculture is the most important industry and production is labor intensive using only limited quantities of capital. Resource allocation is determined very much by traditional methods of production. Stage 2 -- Transitional Stage (the preconditions for takeoff) Increased specialization generates surpluses for trading. There is an emergence of a transport infrastructure to support trade. As incomes, savings and investment grow entrepreneurs emerge. External trade also occurs concentrating on primary products. Stage 3 -- Take Off Industrialization increases, with workers switching from the agricultural sector to the manufacturing sector. Growth is concentrated in a few regions of the country and in one or two manufacturing industries. The level of investment reaches over 10% of GNP. The economic transitions are accompanied by the evolution of new political and social institutions that support the industrialization. The growth is self-sustaining as investment leads to increasing incomes in turn generating more savings to finance further investment. Stage 4 -- Drive to Maturity The economy is diversifying into new areas. Technological innovation is providing a diverse range of investment opportunities. The economy is producing a wide range of goods and services and there is less reliance on imports. Stage 5 -- High Mass Consumption The economy is geared towards mass consumption. The consumer durable industries flourish. The service sector becomes increasingly dominant. According to Rostow, development requires substantial investment in capital. For the economies of LDCs to grow, the right conditions for such investment would have to be created. If aid is given or foreign direct investment occurs at stage 3 the economy needs to have reached stage 2. If the stage 2 has been reached then injections of investment may lead to rapid growth. Limitations Many development economists argue that Rostows's model was developed with Western cultures in mind and not applicable to LDCs. It addition its generalized nature makes it somewhat limited. It does not set down the detailed nature of the pre-conditions for growth. In reality, policy makers are unable to clearly identify stages as they merge together. Thus as a predictive model it is not very helpful. Perhaps its main use is to highlight the need for investment. Like many of the other models of economic developments it is essentially a growth model and does not address the issue of development in the wider context.

8 ROSTOW’S 5 STAGES I – TRADITIONAL SOCIETY
Read only – know the stages! ROSTOW’S 5 STAGES I – TRADITIONAL SOCIETY II – PRE CONDITIONS FOR TAKE OFF III TAKE OFF IV – DRIVE TO MATURITY V – AGE OF MASS CONSUMPTION

9 Fill out this chart based on the info in the slides that follow….

10 Rostow’s development/modernization model
I - Traditional Society – A country that has not yet started a process of development. Eco activities =/PRM 1, maybe SEC 2 JOBS > subsistence agriculture activities, wealth is not accumulated as income but measured by other means such as cattle, large families, etc… Production is mainly subsistence (enough to feed the family), localized and self-sufficient Power in the society resides in the landed Aristocracy (social elite). They tend to spend surplus wealth on luxury items rather than invest it in means to increase production because labor (everybody else, due to tradition or income) Is available and cheap. Social structure is rigid and unchanging, ppl resist technological change. May be due to lack of education, desire to hold on to existing social/political structure…. Think places in central Africa, South Asia…..

11 Rostow’s development model
II -The Preconditions for Takeoff - A transition period leading to sustained economic growth, openness and diversification Eco activities 1,2 (shifting to 2) JOBS > The beginnings of economic diversification (agriculture is no longer the dominant activity), initial improvements in efficiency of production, and changes in the society's attitudes and goals. Production starts to shift from predominantly agri to manufacturing for export Wealth: Starts to become accumulated by the few the proud, the social elite…. POWER > An elite group within society often initiates changes when they see changes can benefit themselves, are property holders, political leaders, etc… Think Vietnam, Thailand, Libya, Chile…. .

12 Rostow’s development model – remember the eco sectors
III - The Takeoff - A rapid growth period generated in a limited number of economic activities. The sustained growth is fostered by increases in capital investment to a level that exceeds the rate of population growth. In essence, the takeoff represents the beginning of the industrial period. Wealth is accumulated, production increases, services start to be the norm rather than reliance on subsistence…. Much rejoicing An industrial revolution takes place and sustained growth takes hold You will also see increased urbanization, industrialization, tech/mass production occurs Takeoff started to happen GLOBALLY with the Industrial Revolution Think China, India, Mexico…

13 Rostow’s development model
IV - The Drive to Maturity – The economy is highly diversified (1/2/3/4 but < to >) technology is integral to all sectors. Production (2) is outsourced and services (3) are sustained at a high rate Capital investment remains high mechanization in agriculture reduces the need for rural labor the growth of manufacturing and service occupations in cities Leads to urbanization of the population as workers become more skilled and specialized. Industrial specicalization occurs, international trade expands Modernization is evident, pop growth slows - WHERE MOST DEVELOPED COUNTRIES ARE NOW… Singapore, South Korea….

14 Rostow’s development model
V - The Age of Mass Consumption - The economy shifts from production of heavy industry (2) to consumer goods/services (3,4) The population is highly urbanized and the abundance of wealth allows for generous allocations to social welfare programs and national defense. High income, widespread production of goods and services Majority of workers in service/tertiary (3) sector Takes years to get from Take off to Mass Consumption Much rejoicing…. In US, Japan, Germany….

15 Fill in the boxes on your graphic
Exposure to consumers in other countries diffuses Knowledge, tech, etc… Starts production shifts in other countries *Increases wealth in all social sectors not just social elite Trad: By 1776/independence Pre Con: 19th C – T/O: 19th C – 1850’s Drive to Maturity: Late 1800’s High Mass Cons: 20th Century International trade Quat. Eco act exceeds 10% -20% of GDP Physical infrastructure modern External markets and infl. Overly simplistic, Very biased ‘Myth of developmentalism’ (every country can reach stage 5)… Early starters can’t be compared to late starters (ES get to stage 5 by exploiting LS) Social and political elite

16 Problems w/Rostow… In LDCs it is easy to get stuck in Stage 3,
Summarize on the back of the page again… Problems w/Rostow… In LDCs it is easy to get stuck in Stage 3, esp if industry is from foreign investment (profits go back to home office…) Investments tend to be done in MDC stocks Excess population means wages remain low… Planned economies like USSR in 20th century, China now, can get stuck in Stage 3 Gov’t directs investment Consumer frustration leads to pol. unrest Dual markets such as China (free and planned)

17 Summarize Criticisms Some argue that the development process is too complex to be distilled into such simplified models. Also basing the model on the European development experience leads to criticism (because it is argued that in different parts of the world development must follow a different course because of different historical, cultural and environmental circumstances. ) Doesn’t take culture and other elements of human geography into account Assumes all countries will follow same path to modernization using the 5 stages Is climbing the ‘development ladder’ really what life is all about or can ppl be happy in stage II????

18 Draw this – it is NOT in the book anymore…

19 Just remember to say ‘hie’!
Geography H I E Format -Write this in UNIT 8/Toolkit Helps you answer just about everything in Geography! Just remember to say ‘hie’! Health issues/demographics (more on this in population unit) Infrastructure/technology Education – formal and informal

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21 STOP! End of day 1

22 2014 FRQ on development 1. Rostow’s five-stage model of economic growth and the core-periphery concept of Wallerstein’s three-part world system theory are two of the more common economic development models. A. Identify and compare three differences between the stages of economic growth and the core-periphery model. B. Use one of the two models to explain the level of economic development in either Mexico or Brazil. C. Give two examples of how the core-periphery concept can be applied below the national scale.

23 World Systems Theory - Wallerstein
3 tiered structure > 1- Core / 2- semi-periphery / 3- periphery Helps explain interconnections b/t places in the global economy  Core – generates wealth :-I Semi-periphery has both types of processes, serves as a buffer in the world economy  Peripheral area – have lower ed, wealth, tech, (infrastructure issues) etc…

24 WST aka the Core/Periphery map

25 World Systems Theory - Wallerstein
Encompasses Geography Scale (local – global) Place issues Culture Helps us understand the political organization of space too (file this thought for January….)

26 WST/Core - Periphery Model
A model of the spatial structure of an economic system in which underdeveloped or declining peripheral areas are defined with respect to their dependence on a dominating developed core region. At all spatial scales, the model assumes that at least partially and temporally the growth and prosperity of core regions is at the expense of exploited peripheral zones.

27 Criticisms of WST The entire world can’t experience the same level of wealth in a capitalist driven system However Different from Rostow /modernization theory b/c it holds that not all places can be equally wealthy in capitalist world economy Power relations are explicit among places Does not assume socioeconomic change will occur the same way in all places. Is applicable across all scales

28 Last thoughts….. Structuralist Theory – economic disparities are built into the system Dependency Theory – political/economic relationships b/t countries limit eco possibilities in poor areas. - better for population - good for development MIG CHART > start filling this out and do so for each unit (all year). Testable material!

29 So, what’s the difference and which do you agree with?
Rostow – every country can get to Stage 5… someday Wallerstein – some area must be the periphery in order for there to be a core…. Someone has to have a ‘nasty, poor, brutish, and short’ life…. Be prepared to take a stand for one or the other and defend it using geography…. Watch Hans! - good for development

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31 2014 FRQ on development 1. Rostow’s five-stage model of economic growth and the core-periphery concept of Wallerstein’s three-part world system theory are two of the more common economic development models. A. Identify and compare three differences between the stages of economic growth and the core-periphery model. B. Use one of the two models to explain the level of economic development in either Mexico or Brazil. C. Give two examples of how the core-periphery concept can be applied below the national scale.

32 end

33 Go over Case Studies and pick 2 to illustrate
Rostow case studies MAKE A GRAPHIC – use some blank computer paper CHOOSE 2 CASE STUDIES BELOW AND CREATE 2 DIFFERENT GRAPHICS TO DEPICT EACH RELATIONSHIP TO THE ROSTOW MODEL. (Web, Political cartoon with caption, etc…. CASE STUDY 1 Review what you know about gender. How might gender discrimination and lack of education limit the usefulness of Rostow’s model? CASE STUDY 2 Review what you know about resistance to Western culture. How might such resistance undermine Rostow? Think of specific countries as examples. CASE STUDY 3 Review the caste system. How might the caste system undermine Rostow? CASE STUDY 4 Review what you know about the Balkans/Yugoslavia in the 1990s. How might the events in this region undermine Rostow? CASE STUDY 5 Review what you know about Iraq today. How might the events in this region undermine Rostow? Groups of 3-4 Go over Case Studies and pick 2 to illustrate

34 The magic phrases of APHG…try to start applying these to DEVELOPMENT….
TECHNOLOGY INFRASTRUCTURE EDUCATION OF WOMEN DIFFUSION OF KNOWLEDGE DEMOGRAPHICS > IMR, FT, LE….

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37 2014 FRQ on development 1. Rostow’s five-stage model of economic growth and the core-periphery concept of Wallerstein’s three-part world system theory are two of the more common economic development models. A. Identify and compare three differences between the stages of economic growth and the core-periphery model. B. Use one of the two models to explain the level of economic development in either Mexico or Brazil. C. Give two examples of how the core-periphery concept can be applied below the national scale.


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