Development & IndustryResources:• Textbook, Chapters 10 & 12• Wood book, Unit 6 (Industrialization &
Economic Development)Important Dates:5/4 – Chapter 10 & 12 Quiz5/6 – Development & Industry Test
DEVELOPMENTChapter 10
The single most important geographic fact of development is its’ striking unevenness.
http://www.rasmusen.org/x/2006/10/28/mark-newmans-cartograms/
Cartogram: World Population
http://www.rasmusen.org/x/2006/10/28/mark-newmans-cartograms/
Cartogram: GDP
Population
Economy
The difference is development.
How do you define & measure development?
Wealth does not depend only on what is produced, but largely on how and where it is produced.
• Development implies progress
• Often controversial b/c not tied to happiness, social stability or sustainability
• 3 major areas to measure: economic welfare, technology and production, social welfare
Indicators of DevelopmentEconomic indicators of development• Gross domestic product per capita• Types of jobs• Raw materials• 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
Measuring Economic WelfareGross 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 – per capita
Measure of the monetary worth of what is produced within a country plus income received from investments outside the country
Limitations of GNI: 1. Formal economy vs. informal economy2. Distribution of wealth3. Measures only output, not costs of production
Annual GDP per capita, 2005
Fig. 9-2: Annual gross domestic product (GDP) per capita averages over $20,000 in most developed countries but under $5000 in most less developed countries.
Informal economy
Formal economy
Other Ways of Measuring Development
Technology & Productivity:• Occupational structure of the labor force
(employment in sectors of the economy)• Productivity per worker (production divided by total
labor force)• Transportation and communications facilities per
person (per capita index of transportation and communications per person)
Social Welfare:• Dependency ratio (dependents, young and old, that
each 100 workers must support)
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
Dependency Ratio, 2007
Development ModelsCriticisms:
–“Progress” – industry better or worse?–Similar path or process in all countries
Walt Rostow’s Modernization model5 Stages of Development:
1. Traditional2. Preconditions of takeoff3. Takeoff4. Drive to maturity5. High mass consumption
AKA Rostow’s Ladder of Development
Problems with Rostow’s Model and the International Trade Approach
1. 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.
2. Increased dependence on MDC’s and their markets• Undue influence of many global policies, including those
of the U.N. and World Bank.
3. 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 vs. those in the Core.
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