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Contemporary Human GeographyChapter 9:

Development

What does Development Mean?

Development implies “progress”

Progress in what?

Do all cultures view development the same way?

Do all cultures “value” the same kinds of development?

Development

World divided into more developed countries (MDC) and less developed countries (LDC).

MDCs vs. LDCs:

One-fifth of world’s population lives in MDCs and consumes five-sixths of the world’s goods.

In Africa 14 percent of the world’s population consumes 1 percent.

Americans spend more on cosmetics ($8 billion) than the LDCs spend on education.

Europeans spend more on ice cream ($11 billion) than LDCs spend on plumbing (toilets).

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Human Development Index

HDI (created by the UN) measures a country’s level of development

~185 countries classified

Development is a continuous process

Human Development Index (Cont.)

HDI uses three factorsECONOMIC (Income)

Gross Domestic Product (GDP)- the value of all goods and services produced in a country.

SOCIAL (Education)

Literacy rate

Education (years)

DEMOGRAPHIC (Health)

Life Expectancy

Highest HDI is 1.0

Norway .955

Niger .304

United States HDI Income 8th

Education 2nd

Health 38th

2012 Ranking 3rd overall

Economic (Income)

Economic Structure Average per capita

income in MDCs higher due to jobs Primary – Agriculture

Secondary –Manufacturing

Tertiary – Services

Ratio of farmers to society equates to national wealth

Changes in percent employed in primary, secondary and tertiary sectors

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Review

Identify (name) each of the three sectors of employment and provide an example for each.

PrimaryAgriculture

SecondaryManufacturing

TertiaryServices

Economic (Income)

Gross Domestic Product What is it?

Social (Education)

People in MDCs – higher literacy rate

MDCs and LDCs differ in educational development

Education and Literacy Higher level of development

higher quality of education

Student/teacher ratio

Literacy rate – percentage of people who can read and write

Ticket to higher status

Educational language

Percent of Adults who are Literate

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Social (education)

Relation of GDP to education is critical

MDCs have more money to spend per pupil

Percent Enrolled in School

Percent of GDP to Education:Very high human development 3.8% of GDP Low human development 3.7% of GDPWhat does this mean?

GDP = the value of the total output of goods and services produced in a country.GDP/capita or personEx. GDP of U.S. is $14 trillion/300 million people = ~$46,000 x 3.8% = ~$1748GDP of Niger is $7.4 billion/17.8 million = ~$412 x 3.7% = ~$15

Review

Explain why a significant difference may exist in the quality of education between countries where an equal share of GDP is committed to education.

Ex. Japan = 3.8% of GDP

Kenya = 3.6% of GDP

Demographic (Health)

Key Demographic Differences Between MDC’s and LDC’s Life Expectancy

Higher in MDCs

More older people; fewer <15

Infant Mortality Greater in LDCs

Malnutrition and lack of medicine

Natural Increase (NIR or RNI) Greater NIR strains a countries ability to

provide hospitals, schools, jobs, etc.

Crude Birth Rate (CBR) Family planning (cultural), birth control (economic/cultural)

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Demographic (Health) One-third of Africans

and one-sixth all people undernourished

Greater MDC wealth can be used to obtain food

and health care

MDCs spend less on health care Focus on prevention

More productive

Percent of Population that is Undernourished

All regions around the world have shown growth except…Eastern Europe –

only region HDI has decreased.-Communist legacy-Conflict

HDI Trend

Review

What is the only region of the world that hasn’t shown development progress? Why?

Eastern Europe Communist Legacy

Political Unrest/Conflict

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Gender-Related Development

Status of women is lower than men in every country

Development gap has reduced by 2/3 in LDCs

by 1/4 in MDCs

Two indexes GDI (Gender-related

Development Index) – compares level of development of women to both sexes

GEM (Gender Empowerment Measure) – compares ability of women and men to participate in economic and political decisions

Gender-Related Development (Cont.)

GDI – uses adjusted HDI

Lower income than men (avg) 60% MDC

50% LDC

Life Expectancy In MDC women live several years longer

than men

In LDC women have shorter life spans than men

Education Women out number men in

Colleges/Universities in MDCs

In LDCs women are much less numerous

Gender-Related Development (Cont.)

GEM - combines: Income, Professional jobs, Managerial jobs, and Elected jobs

Professional and Technical Jobs MDCs – women more

likely

LDCs – more likely men

Elected Positions – Women hold 1/6 Worldwide

but low in Middle East and South Asia

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Our Century’s Greatest Injustice

Two Paths to Development

Development through self-sufficiency Equitable investment spread across all regions

Precedence for poverty reduction (modest growth)

Businesses that are new or struggling are protected from international corporations

Barriers for imports

Drawbacks Inefficient industries protected

Very bureaucratic

Limited “New Money”

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Rostow’s Development Model(International Trade) Developed by W.W.

Rostow (1950s)

A country can develop economically by concentrating scarce resources on expansion of its distinctive local industries and resources

Rostow - Stages of Growth1. Traditional Society Characterized by

subsistence economy – output not traded or recorded it is consumed

high levels of agriculture and labor intensive agriculture

Wealth allocated to non-productive activities (religious, military

86% of the resident workforce in Lesotho is engaged in subsistence agriculture.

AFGANISTAN NEPAL

-%urban 18% 10%

-per capita income $345 $419

-infant mortality 154/1000 62/1000

Rostow - Stages of Growth2. Pre-conditions:

An elite group or government initiates development

Investments in technology and transport infrastructure

Commercialization of agriculture creates a surplus

Emergence of entrepreneurs

The use of some capital equipment can help increase productivity and generate small surpluses which can be traded.

INDIA GHANA

-%urban 26% 36%



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Rostow - Stages of Growth3. Take off:

Increasing industrialization in limited areas (food or textiles)

Foreign investment increases

Infrastructure improvements

Some regional growth

Economy still dominated by traditional practices

At this stage, industrial growth may be linked to primary industries. The level of technology required will be low.

MALAYSIA THAILAND

-%urban 51% 22%



AFGANISTAN NEPAL

-%urban 18% 10%



INDIA GHANA

-%urban 26% 36%



MALAYSIA THAILAND

-%urban 51% 22%



Review:Rostow’s Stage of Development

4. Drive to Maturity: Develops broad

manufacturing and commercial base

Industry and economy more diversified

Increase in urban population

Increase in levels of technology utilized

As the economy matures, technology plays an increasing role in developing high value added products.

TAIWAN S. KOREA

-%urban 74% 75%


-infant mortality 5.9/1000 5.4/1000

Rostow - Stages of Growth

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Rostow - Stages of Growth5. High mass

consumption Income beyond basic

food, shelter and clothing.

Increased interest in social welfare.

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. JAPAN USA

-%urban 61% 75%



AFGANISTAN NEPAL

-%urban 18% 10%



INDIA GHANA

-%urban 26% 36%



MALAYSIA THAILAND

-%urban 51% 22%



TAIWAN S. KOREA

-%urban 74% 75%



JAPAN USA

-%urban 61% 75%



USA Path to Development

Stage 5: early 20th century

Stage 4: late 19th century

Stage 3: middle of 19th century

Stage 2: first half of 19th century

Stage 1: prior to independence

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Is there one more step?

Possible 6th stage – Postindustrial Service replaces industry

Information replaces energy as key resource

Review:

Without using your notes, list each of the five levels of development described by Rostow and provide an import fact for each.

Fair Trade Fair trade is an international

development model that protects small businesses and workers

Fair trade, higher percentage of sales price goes to producer Fairtrade Labeling

Organizations International sets international standards

Two sets of standards One applies to producers

One to workers

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Fair Trade (Cont.)

Fair Trade Producer Standards Advocates work with small

business

Small farmers band together to obtain credit, materials and fair prices

Cooperatives benefit members

Cooperative managed democratically

Consumers pay higher prices for fair trade products

Quality may be higher

Fair Trade Worker Standards Tiny percentage of price

reaches the LDC producer

Fair trade returns an average of 1/3 to the producer

Worker’s rights not high priority according to critics

Minimal government oversight

Women workers

Paying fair wages

Intermediaries removed

Two Paths to Development

Development through self-sufficiency Equitable investment spread

Precedence for poverty reduction

Businesses that are new or struggling are protected

Barriers for imports

Drawbacks Inefficient industries protected

Very bureaucratic

Limited “New Money”

India Trade barriers

Inefficient

Too much bureaucracy

Two Paths to Development (Cont.)

Development through International trade Distinctive concentration of scarce resources

Hope to sell worldwide

Rostow five-stage model Traditional society –high agriculture, wealth to nonproductive activities

Preconditions for takeoff – invest into infrastructure with hopes to boost industry

Takeoff – rapid growth concentrated on limited number of economic activities

Drive to maturity – Modern technologies introduced, other industries emerge

Age of mass consumption – change from “heavy” industries to consumer goods

The “Four Dragons” South Korea, Singapore, Taiwan, Hong Kong

-Limited natural resources turned to human resources (low labor costs)

Petroleum-rich Arabian Peninsula Saudi Arabia, Bahrain, Oman and the U.A.E

“Black Gold”

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Fair Trade Fair trade is an international

development model that protects small businesses and workers

Fair trade, higher percentage of sales price goes to producer Fairtrade Labeling

Organizations International sets international standards

TransFair USA

Two sets of standards One applies to producers

One to workers

Figure 9.9.1

Fair Trade (Cont.)

Fair Trade Producer Standards Advocates work with small

business

Small farmers band together to obtain credit, materials and fair prices

Cooperatives benefit members

Cooperative managed democratically

Consumers pay higher prices for fair trade products

Quality may be higher

Fair Trade (Cont.)

Fair Trade Worker Standards Tiny percentage of price reaches the LDC producer

Fair trade returns an average of 1/3 to the producer

Worker’s rights not high priority according to critics

Minimal government oversight

Women workers

Paying fair wages

Intermediaries removed

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World Trade Most LDCs have adopted the

international trade development path

The WTO has facilitated adoption of the international trade path

Self-sufficiency advocates converted to international trade during the 1990s – overwhelming evidence

Three problems hindered development: Middle East petroleum allowed for

quick growth while others lag

Markets growing more slowly than they had in past

LDCs cut production for their own people creating shortfalls in some areas

World Trade (Cont.)

Foreign Direct Investment Investment in the economy of

another country by corporations 1970 $13 bil to $1.25 tr in 2010

2010 US = $194 bil

Only 1/3 from MDCs to LDCs

½ of all FDI goes to China

India dismantled barriers created by the self-sufficiency model during 1990s Foreign companies allowed

Tariffs, restrictions, and monopolies gone

Indian companies improved products

World Trade (Cont.)

World Trade Organization Promotes international trade

97% of world trade

Works to reduce barriers Negotiations to reduce or eliminate restrictions on trade

and movement of money

Rulings on charges relating to violations of trade agreements

WTO Protesters

Critics – WTO closed door decisions and compromise country sovereignty

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Chapter Summary

Human Development

World divided –MDCs & LDCs

UN HDI measures development

GDI compares development of women and men

Development Through Trade

Self-sufficiency & international trade

Self-sufficiency old; most countries follow international trade now

LDCs use loans; need economic reforms

Fair trade

MDCs & LDCs compared

Economic GDP

MDC education & literacy

Key demographic differences

MDCs better nutrition and health care

Development Indicators

Geographic Consequences of Change

World division into MDCs and LDCs also described as a north –south split

Use a polar map projection – different view MDCs inner core

LDCs outer ring

MDCs play dominate role in forming LDC economies

Many people oppose increased LDC trade – exploitation

LDCs exploitation may be a small price for development

China and India-- rapid, large-scale development

Contemporary Human Geography 29 © 2010 Pearson Education, Inc.

Chapter Resources

Wal-Mart and China – effects of globalization Two videos

Wal-Mart: The high cost of low price www.walmartmovie.com

China Rising – The Foreign Policy Institute

The complete Human Development Index Report http://hdr.undp.org

Earth trends portion of the World Resources Institute (WRI) http://earthtrends.wri.org

Contemporary Human Geography 30 © 2010 Pearson Education, Inc.

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