1. Chapter 9
Development

2. United Nations Development Program

3. HDI Human Development Index Established by the UN
Recognizes a country and it’s level of development
Distinguished by 3 factors:
Economic (GDP)
Social (literacy rate and amount of education)
Demographic (life expectancy)

4. Indicators of Development
Economic indicators of development
Gross domestic product per capita
Worker productivity and types of jobs
Access to raw materials
Availability of consumer goods
Social indicators of development
Education and literacy
Health and welfare
Demographic indicators of development
Life expectancy – Infant mortality rate
Natural increase rate – Crude birth rate

5. More & Less Developed Regions
More developed regions
Anglo-America – Western Europe
Eastern Europe – Japan
South Pacific
Less developed regions
Latin America – East Asia
Southeast Asia – Middle East
South Asia – Sub-Saharan Africa

9. Earning a Living Jobs fall into 3 categories:
Primary (take things/products directly from the Earth…farming, mining, fishing, forestry)
Secondary (transforming, processing, assembling raw materials into products…manufacturing)
Tertiary (products and services provided for payment…retailing, banking, law, education, government)

10. Primary Activities
Direct removal of natural resources such as mining, forestry, and agriculture -most important in the LDCs.
Subsistence Agriculture
Fishing and Forestry
Mining and Quarrying

11. Primary Products
The percentage of people working in agriculture exceeds 75% in many LDCs of Africa and Asia. In Anglo-America and Western Europe the figure is <5%

12. Trade in Primary Products
Importance to Developing Economies
Danger of Commodity Trade Dependence
Puerto Rico Coffee Plantation

13. Secondary Activities: Manufacturing
Secondary - Processing and transforming natural resources: steel, textiles, auto assembly. These used to be most important in MDCs, but increasingly important in the semi-periphery (Korea, Mexico, Brazil, Singapore)

14. Tertiary and Beyond: Services
Provision of services in exchange for payment. Includes retailing, banking, law, education, and government.
Education and information technology becoming most important in the postindustrial core regions.
Less-developed countries often focus on tourism.
Services historically were clustered into settlements. Increasingly the most important service centers are massive world cities.

15. Development and Gender
Gender-related development index
Economic indicator of gender differences
Social indicators of gender differences
Demographic indicator of gender differences
Gender empowerment
Economic indicators of empowerment
Political indicators of empowerment

16. Strategies for International Development
Self-Sufficiency Model
Mexico
India
International Trade Model (Economic Growth)
Rostow’s Model
World Bank lending
Basic Needs Model/Appropriate Technology Model
Microlending (Grameen Bank, Kiva.org)
Revolutionary/Radical Reform Model
Cuba, U.S.S.R

17. 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.

18. 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?
Copyright: Dave Dyett,

19. 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.
Copyright: Tracy Wade,

20. 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.
Copyright: Tim & Annette,

21. 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.
Copyright: Ramon Venne,

22. 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
As the economy matures, technology plays an increasing role in developing high value added products.
Copyright: Joao de Freitas,

23. 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.
Copyright: Elliott Tompkins,

24. 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: the MDCs have very limited population growth. Markets for low-cost manufactured goods grow slowly today. Undervalues the obstacles and competitive disadvantages faced by late starters versus those in the Core.

25. Fair Trade Coffee
Because the role of middlemen is reduced and because consumers generally pay higher prices, producers of fair trade coffee can earn more than traditional coffee growers.

26. Core and Periphery in World Economy
Fig. 9-25: This north polar projection of the world shows that most of the MDCs are in a core area north of 30° N latitude. The LDCs are mostly on the periphery of this map.