AgendaAgenda►Questions?Questions?►ReviewReview

TodayToday

Test 1 reminder, October 6Test 1 reminder, October 6 Assignment 1Assignment 1 Regional Economic ChangeRegional Economic Change

► Growth Pole Theory and LethbridgeGrowth Pole Theory and Lethbridge

World Levels of DevelopmentWorld Levels of Development Wednesday Chapter 4Wednesday Chapter 4

Fundamental Issue: Concentrate Fundamental Issue: Concentrate Effort or Spread Effort?Effort or Spread Effort?

► Regional economic policy in Canada: the Regional economic policy in Canada: the role of the staterole of the state, again!, again!

► Agricultural rehabilitation Agricultural rehabilitation ► Appalachia and “War on Poverty”Appalachia and “War on Poverty”► DREE: Department of Regional Economic DREE: Department of Regional Economic

Expansion – 1969 – a new departmentExpansion – 1969 – a new department►Growth Pole theory: a new strategyGrowth Pole theory: a new strategy► Atlantic Canada and Quebec were main Atlantic Canada and Quebec were main

beneficiaries. See Thayer Watkins:beneficiaries. See Thayer Watkins:► http://www2.sjsu.edu/faculty/watkins/canada.htmhttp://www2.sjsu.edu/faculty/watkins/canada.htm

LethbridgeLethbridge

► In 1970s, designated as the Growth In 1970s, designated as the Growth Pole for the lagging region of southern Pole for the lagging region of southern AlbertaAlberta

► Grants to Swift Canadian, Lethbridge Grants to Swift Canadian, Lethbridge Iron Works, Canadian Dressed Meats, Iron Works, Canadian Dressed Meats, Kirchner Machine, Western Canadian Kirchner Machine, Western Canadian Seed Processing (now Canbra Foods).Seed Processing (now Canbra Foods).

►Later incentives to attract Palliser Later incentives to attract Palliser Distillers, Kawneer, among othersDistillers, Kawneer, among others

►Details?Details?

Swift Canadian, 1971Swift Canadian, 1971

(Sakai Spice, 2002(Sakai Spice, 2002

According to Donald Savoie in According to Donald Savoie in Regional Regional Economic Development: Canada’s Economic Development: Canada’s Search for SolutionsSearch for Solutions (1992): (1992):

“Outside firms lured into a region solely on the basis of incentives have not performed as well as initially envisaged. Indeed, we can confidently report that large cash grants to businesses to see them locate economic activities in slow-growing regions have never lived up to expectations.” (p. 257)

World Levels of World Levels of DevelopmentDevelopment

GNP/capitaGNP/capita(total value of (total value of good and services good and services produced) in US$produced) in US$to compare levels to compare levels of economic of economic activityactivity(Wheeler et al. p. (Wheeler et al. p. 39)39)

An alternative An alternative economics…economics…

An alternative definition of An alternative definition of world levels of developmentworld levels of development

► People are the real wealth of nations. Indeed,► the basic purpose of development is to enlarge► human freedoms. The process of development► can expand human capabilities by expanding► the choices that people have to live full and

creative► lives. And people are both the beneficiaries► of such development and the agents of the► progress and change that bring it about. This► process must benefit all individuals equitably► and build on the participation of each of them.► This approach to development—human► development—has been advocated by every► Human Development Report since the first in► 1990.

How do we measure How do we measure Human Development?Human Development?

►A composite measure…A composite measure…►Difficult to compare countries:Difficult to compare countries:

Life expectancy at birthLife expectancy at birth Adult literacy rateAdult literacy rate Combined gross enrolment ratio for Combined gross enrolment ratio for

primary, secondary and tertiary schoolsprimary, secondary and tertiary schools GDP per capita converted to US$ PPPGDP per capita converted to US$ PPP

► Convert to indices and combine to HDIConvert to indices and combine to HDI

Source: UNDP HDR 2004, p. 128

Source: UNDP HDR 2004, p. 134

Source: UNDP HDR 2004, p. 134

High human development group

LE at birth GDP Life Ed GDP HDUS$ Index Index Index Index

1 Norway 78.9 36,600 0.90 0.99 0.99 0.956 2 Sweden 80.0 26,050 0.92 0.99 0.93 0.946 3 Australia 79.1 28,260 0.90 0.99 0.94 0.946 4 Canada 79.3 29,480 0.90 0.98 0.95 0.943 5 Netherlands 78.3 29,100 0.89 0.99 0.95 0.942 6 Belgium 78.7 27,570 0.90 0.99 0.94 0.942 7 Iceland 79.7 29,750 0.91 0.96 0.95 0.941 8 U.S. 77.0 35,750 0.87 0.97 0.98 0.939 9 Japan 81.5 26,940 0.94 0.94 0.93 0.938 10 Ireland 76.9 36,360 0.86 0.96 0.98 0.936