1. How Do You Define and Measure Development?
Gross National Product (GNP)-Measure of the total value of the officially recorded goods and services produced by the citizens and corporations of a country in a given year, both inside and outside a country’s territory
Gross Domestic Product (GDP)-Measure of the total value of the officially recorded goods and services produced with a country by the citizens and corporations in a given year
Gross National Income (GNI)-Most common measurement used today. Measure of the monetary worth of what is produced within a country plus income received from investments outside the country
Then divide by the total population of each country to get per capita, “by head” to get an average dollar amount.

2. Issues with Measuring Economic Development
Formal economy, think forms, applications
The legal economy that governments tax and monitor
Counted in all measures of economy
Informal economy, “Black Market” or “Underground”, usually cash based
The illegal or uncounted economy that governments do not tax or monitor; bootleg DVD’s & pirated software & Sr. Helote.
Not included in measures of economy

3. Other Ways….
Occupational structure of the labor force (employment in sectors of the economy; Primary/Agriculture, Secondary/Manufacturing, Tertiary/Services).
Productivity per worker (production divided by total labor force=iPods per worker)
Transportation and communications facilities per person (per capita index of transportation and communications per person)
Dependency ratio (dependents, young and old, that each 100 workers must support)

4. Dependency Ratio, 2007
A measure of the number of people under the age of 15 and over the age of 65 who depend on each working-age adult

5. Development Models Implication or assumption of
“Progress”=technology & more stuff
Similar path or process in all countries
Walt Rostow’s Modernization model
Traditional-agriculture, rigid society
Preconditions of takeoff-why don’t we try something else like paving roads?
Takeoff-urbanization and industrialization
Drive to maturity-few left in agriculture
High mass consumption-Core, Stage late 3, 4

6. How Does Geographical Situation Affect Development?
Importance of context: What happens at state, local, global scale
Colonialism
Diffusion of idea of the state
Dependence of colonies on rulers
Wealth to ruling countries
Neo-colonialism: Continuation of economic dependency despite political independence, think Libya selling most of its oil to Italy its former colonizer
Structuralist theory: Difficult-to-change, large-scale economic arrangements

7. Dependency Theory Development possibilities limited by
Political and economic relations between regions and countries
Dependency of former colonies on former ruling countries for loans, markets, migration, etc.
Reinforcement of dependency despite political independence
Dollarization: Replacing local currency with currency of a wealthy country USD in El Salvador and Vietnam
Little hope for development in countries dominated by wealthy powers

8. World-Systems Theory: Three-Tier Structure
Core =USA
Processes that incorporate higher levels of education, higher salaries, and more technology
Generate more wealth in the world economy
Periphery =El Salvador
Processes that incorporate lower levels of education, lower salaries, and less technology
Generate less wealth in the world economy
Semi-periphery =Mexico
Places where core and periphery processes are both occurring
Places that are exploited by the core but then exploit the periphery
Serves as a buffer between core and periphery

9. What Are the Barriers to and the Costs of Development?
Millennium Development Goals
Eliminate extreme poverty and hunger
Achieve universal primary education
Promote gender equality and empower women
Reduce child mortality
Improve maternal health
Combat HIV/AIDS, malaria, and other diseases
Ensure environmental sustainability
Develop a global partnership for development

10. Human Development Index includes GDP per capita, literacy, life expectancy

11. Barriers to Development
Social conditions
Foreign debt and structural adjustment loans from World Bank, IMF, commercial banks and states/countries
Political instability-not much development going on in the Middle East right now..
Widespread disease (e.g., malaria)-AIDS in sub-Saharan Africa,

12. Costs of Economic Development
Industrialization
Air and surface water pollution as old tech cheaper and more polluting
Export Processing Zones (EPZs) tax/duty free!
Maquiladoras on the border of US & Mexico
Special economic zones (SEZs): Shenzhen!
Locations geared to export markets: coastal areas can be more ecologically sensitive, but access to world market needed. Remember S. Sudan

13. Costs of Development Agriculture Tourism Pesticides: DDT
Desertification: desert keep growing like cities
Production for export rather than local markets can lead to states not being able to feed itself
Tourism
Pollution: golf courses need pesticides, herbicides, fertilizers; rain forest becomes hotel
Narrow benefits, most jobs un- or low skilled and low paying
Damage to local cultures

14. How Do Political and Economic Institutions Influence Uneven Development Within States?
Get involved in world markets
Price commodities
Affect whether core processes produce wealth
Shape laws to affect production
Enter international organizations that affect trade
Focus foreign investment in certain places
Support large-scale projects

15. Islands of Development
Government islands: Capital cities such as Brasilia, Washington DC, Abuja
Corporate islands: Disney World, tech campuses such Microsoft, Infosys
Non-governmental organizations (NGOs)
Private, usually non-profit charity organizations seeking to fix imbalance
Microcredit programs: mini loans to individuals for small cottage businesses