CHAPTER 18 LECTURE OUTLINE

DEVELOPMENT & GEOGRAPHY

Human Geography by Malinowski & Kaplan

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Chapter 18 Modules

• 18A Meanings of Development and Development Disparities Today

• 18B Modernization and Economic Development

• 18C World Systems Perspective on Development

• 18D Profiles of Development: The Bottom Billion

• 18E Possible Solutions to the Development Crisis

• 18F Export-Led Approaches to Development

• 18G Structuralist and Sustainable Development Models

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18A: Meanings of Development and Development Disparities Today 1

• World development focuses on raising the living standards of the poorest countries and reducing disparities among countries

• Poor countries are often referred to as the Third World, less developed countries, or the developing world

• Rich countries are often referred to as the First World, developed countries, or more developed countries (Second world=Communist Cold War)

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Measures of Equality

• GNI per capita= gross national income per person

• How much do individual citizens have?

• Purchasing power parity= how much can people buy with their money? Gets around the problem of different currencies.

• (US economics–> consumer price index)

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Big Mac Index – how many Working hours for a Big Mac?

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Figure 18A.1 GNI per Capita

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Figure 18A.2 Purchasing Power Parity

18A: Meanings of Development and Development Disparities Today 2

• Human Development Index (HDI)

• A measure of development that includes measures of income, education, and health (life expectancy)

• Gross National Happiness

• Environmental Sustainability

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How happy do citizens feel?

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History of Economic Development

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Preconditions—Imagination (D. Resiman Passing of Traditional Society)

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When asked what would they do about Turkey’s problems if they were the president of Turkey, the answers of persons in Balgat are significant: The poorest shepherd states, ‘My God! How can you say such a thing? How can I...I cannot...a poor villager...master of the whole world?’ The grocer responds, ‘I would make roads for the villagers to come to towns to see the world and would not let them stay in their holes all their life.’

USA was in Take Off in the 1880s

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Figure 18B.2 Rostow’s Model

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Figure 18B.3 GDP per Capita over Time

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Figure 18B.5 % Using the Internet

18B: Modernization & Economic Development 2

• Views on development disparities

• Underdevelopment is a function of progress

• Underdevelopment is intrinsic to a global economic structure that began with colonialism and persists with neocolonialism

• Modernization Theory

• For countries to develop, they need to adopt elements of Western society, including values

• Neoliberalism (Free Market)

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18C: World Systems Perspective on Development

• A lot of modernization theory is based on a Western model and assumes that each country develops on its own

• The world systems perspective views the economic system as a whole

• Core/periphery shows the poorer countries

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Figure 18C.1 European Colonies

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Figure 18C.5 Core-Periphery Relationships

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Figure 18C.6 Commodity Export Economies

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Figure 18D.1 The Undeveloped World

18D: Profiles of Development: The Bottom Billion

• According Collier, there now exists a 3-way stratification of the world’s population

– Feet

– Bicycle

– Automobile

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The Fortunate Billion (Affluent Societies)

The Majority (Developing Societies)

The Bottom Billion (Stagnant Economies)

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POVERTY TRAP • The poor start with a very low level of capital

per person, and then find themselves trapped in poverty because the ratio of capital per person actually falls from generation to generation. The amount of capital per person declines when the population is growing faster than capital is being accumulated ... The question for growth in per capita income is whether the net capital accumulation is large enough to keep up with population growth.

18B: Modernization & Economic Development 2

• Jeffrey Sachs viewed development as a process of overcoming a series of SIX development traps

–human capital,

–business capital,

– infrastructure,

–natural capital,

–public institutional capital,

– knowledge capital

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Figure 18E.1 Factors Needed for Industrialization

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Figure 18E.2 Average Annual GDP Growth per Capita, 2000-2007

18E: Possible Solutions to the Development Crisis

• One possible solution is to accelerate economic growth by way of industrialization, but to do so requires a large portion of a country’s economy

• To overcome this, countries may begin by manufacturing lower value-added products, such as textiles, before attempting higher value-added products, such as electronics

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Figure 18E.3 Primary School Completion Rate, 2003-2006

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18F: Export-Led Approaches to Development Trickle Down/Supply Side

• A view that production of goods for export, sometimes aided by the government, is the key to economic development

• The Tiger economies of East Asia—JAPAN,TAIWAN, SOUTH KOREA, HONG KONG, SINGAPORE successfully employed this strategy

• WORLD BANK and the INTERNATIONAL MONETARY FUND support this strategy.

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Figure 18F.3 Asian Incomes Relative to the U.S.

Microloans=Priming the Pump/Demand Side

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18G: Structuralist & Sustainable Development Models

• Many approaches to development can be said to fit into the structuralist school of development • Sees government interaction as key

• Can be full government control or partial

• Import substitution strategies are common

• Sustainable development seeks a more even distribution of wealth and protection of the environment

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Sustainable development

• Seeks a more even distribution of wealth

• and protection of the environment

• Look for the future of all mankind, not just today’s profits.

• Fair Trade Chocolate and coffee

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