Chapter 21

Concepts of Development

GNP: Gross National Product

GNP:Total value of all goods and services produced whether earned within the country or abroad. by its economy during a given year.

GDP: Gross Domestic Product - only goods and services produced within a country during a given year.

Used for measuring the development status of countries

Drawback-nothing mentioned about the distribution of wealth

GNP (Gross National Product)World bank data shows that, in 1998, the highest GNP country - Liechtenstein with $50,000, followed by Luxembourg ($43,570), Switzerland ($$40,080)

1 Liechtenstein2 Luxenmbourg3 Switzerland4 Norway5 Bermuda6 Denmark7 Japan8 Cayman Islands9 Singapore10 United States11 Iceland12 Austria13 Germany

14 Sweden15 Belgium16 Monaco17 France18 Netherlands19 Finland20 Brunel21 Hong Kong22 UK23 Australia24 Italy25 Canada

50,00043,57040,08034,33034,00033,26032,38031,00030,06029,34028,01026,85025,850

25,62025,38025,00024,94024,76024,11024,00023,67021,40020,30020,25020,020

Developed, developing and underdeveloped countries

DCs- high levels ofurbanization and high

standards of living

Underdeveloped

Developingcountries

Classification of Development - Criticisms

Terminology

Not all the countries will follow the same route

Western bias

It doesn’t point out sources of influences

• Divisions between well-off and less well-off economics are arbitrary• Problem of Data-unreliable, inadequate and incompatible data

Problems from measures

Measures of Development

GNPOccup. Structureof the Labor Force

Productivity perworker

Consumption of Energy per person

Transportation and Communications facility per person

Consumption ofManufactured Metals

per person

Rates

The Core-Periphery Model-focuses on attention on the economic

relationships among places

Semi-periphery

Core Regions: achieved high levels of socioeconomicprosperity, dominant player in global economic game

Periphery: poor countriesdo not have control overtheir own affairs

Core-Periphery model

A key component of many theories, including “World System Theory” proposed by Immanuel Wallerstein

Major difference to D-D-U model (Development Concept) – make power relations among places explicit and does not assume that socioeconomic change will occur in the same way in all places, and scale-sensitive: (see next)

Los AngelesEconomic and social core region of Southern California

Japan-Economic core region of the world

Core-periphery relationship in various scale

Taipei:Economic and social core region of Taiwan

Patterns on the map

Figure 21-1 shows the world economies based on the data from the World Bank.

Low-income:56 countries. The lowest ones include: Cambodia, Mocambique, Ethiopia, Chad, Tanzania and Congo. 4 in western hemisphere.

Middle-income:47 in lower-middle, 18 in upper-middle income

High-income:Oil-rich countries in Southwest Asian, Western European countries, Japan, S. Korea, Taiwan, US, Canada, New Zealand and Australia

Conditions in Periphery

High Birth RateHigh Infant MortalityLow life expectancyHigh illiteracy rate

Protein deficiencyHigh patient/doctor ratio

Few hospitalsInadequate sanitary sys

Fragmented landholdingLack of tools and equipments

Women workload highSubsistence farming

Soil erosion

Unemployment highOver-crowded urban areas

Poor housingSmall mid-income groups

Incomes go to food and basic needs

Population

Health

Rural

Urban

Tourism in Peripherals

Hotels owned by large multinational corporations not the local companies except for countries such as Thailand, Kenya, Barbados and Fiji.

“Demonstration Effect”

Small scale local business is not benefited from the tourism

Irritant industry

Models of DevelopmentLiberal Models – all countries are at the same stage along a development trajectory. All the countries are capable of development

Structural models- all things are structured and organized so that it is hard to change the situation for poorer countries.

Walt Rostow’s Modernization Model – liberal modelTraditional, subsistence farming,

resistance to technological change

Progressive leadership move country toward greater openness, flexibility and diversification

Urbanization, industrialization, technological and mass-production occur

Technology diffuse, industrial specialization, international trade expands, modernization

Rate of pop growth reduced

High income/consumption, service sector employment

Criticism:Not take into

account1) Diff constraints2) Cultural

differences

Traditional

Pre-takeoff

Takeoff

Drive to maturity

Final

Dependency Theory

Structuralist alternative to Modernization modelThe political and economic relationship between countries control and limit the economic development possibilities of less well-off areas.Colonies and colonist: dependent and dominantStill, this theory doesn’t explain the difference in culture, politics and society

A changing world

Mexico, Brazil, Thailand and Malaysia are at takeoff stage.

Sweden and New Zealand - capitalist with socialist principles

China - socialist (communist) with capitalist economics.

Politics and economics are closely intertwined