Development

• The process of improving the material

conditions of people through the diffusion of

knowledge and technology

• More developed countries (MDCs)

– aka “developed” countries

• Less developed countries (LDCs)

– aka “emerging” or “developing”

– or “least developed” or “underdeveloped” countries

• First, Second and Third World were

used when communism was an issue

• Education and immigration rules vary by province.

• Kraft Mac and Cheese is the most popular grocery store item (buy the most

per person of any country)

• From 1990 to 2010 the country grew by 20% (population)

• 2 official languages are used in many areas of the country

• 11th largest economy in the world

• 4% of the population works in the primary sector

• 30% of the land is forest – much of that is in the northern part of the country

• 1.59 TFR

• In the country’s largest city, half of the population is foreign born. Several

other large cities are similar

• An MDC is directly south of the country but no other countries have such a

direct and inhabited border with it

Mystery Country

200 Countries in 4 Minutes

Wallerstein World System’s

Theory (Dependency Theory)

• World view of how development works

What is wrong / right with this picture

Example: Coffee• Cheap labor and raw materials in LDCs

• Cash crop that was exported from LDCs during colonialism

• Now TNCs own plantations in LDCs - based in MDCs (neocolonialism)

• Consumption is mainly in MDCs but also shipped out worldwide

• In most cases, most revenue stays in MDCsCoffee Producing Countries

Coffee Example

• Starbucks – Seattle

• Dunkin Donuts – Canton MA

• McDonald’s – Chicago

• Maxwell

House – Tarrytown NY

• Folgers –

San Francisco

• Keurig – Reading MA

Apple

Periphery Core

Less educated, taxed and

lower incomes

More educated, taxed

and higher incomes

But China is Semi-Periphery

Core

• Lenovo headquarters and

pushes around neighbors

for resources

Periphery

• Factories for Apple

China Neocolonialism?

South China Sea

• Claims resources in

the ocean

• Supposed to be

territorial waters for

200 miles out and

negotiate with

neighbors

• But making islands,

building military bases

on them and just

taking this area as

their own

Wallerstein’s World Systems TheoryDeveloped During the early

1900sHe characterizes the world system as a set of

mechanisms which redistributes resources

from the periphery to the core.

In his terminology,

• The core is the developed, industrialized,

democratic part of the world,

• And the periphery is the underdeveloped,

raw materials-exporting, poor part of the

world;

• The market being the means by which the

core exploits the periphery.

Historical Basis

• At the global scale, the European idea of a

capitalist world-economy diffused across

the world with colonialism/imperialism.

• The Industrial Revolution and colonialism

made colonies dependent on the colonizers

and brought wealth to the imperial powers.

The core countries achieved their initial

dominance through industrial production and

the political control of resources - economic

exploitation.

• Infrastructure for efficient profiteering was

installed; entire populations were regimented

in the service of the colonial order. Colonizers

organized the flows of raw materials for their

own benefit, and we can still see the evidence

of that organization (plantations, ports, mines

and railroads) on the cultural landscape.

Neocolonialism

• In modern times, the use of economic,

political, cultural, or other pressures to

control or influence other countries,

especially former dependencies.

Nike in Asia

MexicoIn Mexico, by

1970, foreign

interest controlled

67 percent of

metal- products,

84 percent of

tobacco industry,

and 100 percent of

rubber, electrical

machinery, and

automobile

industries

In Argentina they

controlled every

“top 50” company

by 1985Why Go to Mexico – How Can TNCs Pressure Mexico to Not Change

Written in the Early 1900s

• This is permanent according to Wallerstein

• But the theory was made in the early 70s

Wallerstein’s Views

• Throughout the history of the modern world-system

there has been a group of core nations competing

with one another for access to the world’s resources,

economic dominance, and hegemony over periphery

countries.

– There is no development of countries from periphery to

core or more developed. Static model.

– Trade and capitalism are negative influences.

– Examines the relationship between countries.

Dependency Model

Core-Periphery Model

• Core processes require high skills,

high levels of education and high

access to technology and consequently

generated high levels of wealth.

• While periphery processes require low

skills, low education and low levels of

technology and generate little wealth.

More Developed Core Countries

(Original MDCs)

• The most economically diversified in jobs, wealthy, and powerful

(economically and militarily); and they are more educated / skilled

• Nowadays tend to specialize in information, finance and service

industries

• Originally known for producing manufactured goods rather than raw

materials for export (e1900s to m1900s)

• More often in the forefront of new technologies and new industries..

• Have more complex and stronger state institutions that help manage

economic affairs internally and externally

• Have a sufficient tax base so these state institutions can provide

infrastructure for a strong economy

• Have more means of influence over noncore nations

• Relatively independent of outside control

Core-Periphery of the M1900s

Periphery Countries

(Original LDC Countries)

• Least economically diversified and originally tended to depend

on one type of economic activity, such as extracting and

exporting raw materials

• Are often targets for investments from multinational (or

transnational) corporations from core nations that come into the

country to exploit cheap unskilled labor

• Tend to have more poverty and lower education levels.

• Inequality tends to be an issue

• Have relatively weaker government institutions with little tax

base to support infrastructure development

• Tend to be extensively influenced by core nations and their

multinational corporations.

SemiPeriphery

• Semiperiphery nations are those that

are midway between the core and

periphery. They tend to be countries

moving towards industrialization and a

more diversified economy. “While they

are weaker than core societies, they are

trying to overcome this weakness and

are not as subject to outside

manipulation as peripheral societies.”

Structuralist

• Some models can also be described as

“structuralist” because they hold that

difficult-to-change, large scale economic

arrangements limit what can happen in

fundamental ways.

• Even after colonies achieved political independence, the core

countries continued to maintain their supremacy by controlling

the production of goods and extraction of natural resources in

countries in the semi-periphery and the periphery. Private

corporations worked closely with government and have had

significant influence over the economies of periphery and semi-

periphery countries. In many cases raw material flows are as

great as they were before the colonies gained independence.

This new form of control, which relied on economic exploitation

and cultural influences rather than political power, is called neo-

colonialism.

MDC LDC Today?

Development – How to Measure

Indicators of development• Human Development Index (HDI)

– 4 factors used to measure (UN) and other factors

considered in differentiating between MDC/LDCs:

• Economic =

– (1) gross national income (GNI) per capita

– Other

» Types of jobs, productivity, consumer goods

• Social =

– (2) mean years of schooling and | 10+ MDC 4 LDC

– (3) expected years of schooling

– Other (health and welfare measures)

• Demographic

– (4) life expectancy

Social, Demographic, and Economic are the broad categories. There

are other indicators for these categories. They chose Life Expectancy,

Years of Schooling, GNI per capita to fill those categories.

Video Examples of HDI

• Explanation

• Examples

Brandt Line

• The Brandt Report is the report written by the

Independent Commission, first chaired by Willy

Brandt (the former German Chancellor) in 1980,

to review international development issues. The

result of this report provided an understanding of

drastic differences in the economic development

for both the North and South hemispheres of the

world.

North-South SplitMDCs clustered in the North

LDCs clustered in the South

Brandt Line

Differences

• GNI Per

Capita

• Birth Rates

• Infrastructure

• Population

Structure

History of the Divide

• Made during the Cold War, the Brandt Line depicts a global division from

the Northern countries to the Southern countries (descriptions of this

divide often correspond to the antiquated terms of North and South.

• The North mostly covers the West and the First World, along with much of

the Second World, while the South largely corresponds with the Third

World.

• While the North may be defined as the richer, more developed region and

the South as the poorer, less developed region, many more factors

differentiate between the two global areas. 95% of the North has enough

food and shelter.

• The Global South "lacks appropriate technology, it has no political stability,

the economies are disarticulated, and their foreign exchange earnings

depend on primary product exports.“

• Nevertheless, the divide between the North and the South increasingly

"corresponds less and less to reality and is increasingly challenged."

How it May Have Started

• The countries North of the divide are

extremely wealthy due to their

successful trade in manufactured

goods, whereas the countries South of

the divide suffer poverty due to their

trade in intermediate goods, where the

export incomes are low.

Theories About the Divide

• Some economists have argued that international free

trade and unhindered capital flows across countries

could lead to a contraction in the North–South divide.

In this case more equal trade and flow of capital

would allow the possibility for developing countries to

further develop economically.

• Others argue that capitalism, colonialism and trade

are the root cause of the divide between the North

and the South

What are Africa’s Issues

• Why does Africa have a harder time

developing?

– Geography

– Neighbors

Economic Measures

Gross National Income (GNI)

• total value of goods and services produced

within a country during a year + foreign income –

payments to nonresidents.

– GNI per capita = Total GNI/population

• allows comparison of different sized populations & economies

• U.S. = $17 trillion/325 million people = GNI per capita = $52,000

• China = $10 trillion/1.4 billion people = $7,200

• Affected by inequality (see GINI coefficient) !!!!

– Much higher in MDCS (> $30,000)

– Lowest in some LDCs (< $4,000)

– Related to other measures like GDP and GNP

– Example: Nicaragua, Chile, Mexico, Canada, Brazil

(which is more likely at the 4,000 mark)

Per Capita GNI

Per Capita GDP (how does it differ)

Formal and Informal(GNI and GDP only measure the Formal Economy)

Formal Economy

• Is the part of the economy

that is taxed and regulated

by the government

• These jobs are usually

– More stable

– Better paying

– Regulated

– Part or a social, safety net

Informal Economy

• The informal sector, informal

economy, or grey economy

is the part of an economy

that is neither taxed nor

monitored by any form of

government.

• These jobs are

– The opposite of the description

of formal

– Legal or illegal

– Often relegated to people

thought of as inferior

– More common in LDCs

Formal and Informal

We used to have the

Maxwell Street Market

Street market in

Pakistan

Types of jobs (economic sectors)

• Primary sector – farmers mainly

– raw materials/extraction – anything you take out of the

ground or water (farming, fishing, mining)

• Secondary sector – factory jobs

– manufacturing, assembly and refining

• Tertiary sector – services

– Incl. sales, transportation and distribution, entertainment,

restaurants, clerical services, media, tourism, insurance,

banking, healthcare, and law.

Job Sectors over Time - America

Primary

• Decreasing in LDCs

– mechanization

• Stable but very low

in MDCs

– can’t go much lower

Secondary

• Has decreased

sharply in MDCs

– De-industrializtion

• Increasing in some

LDCs

– Lower wage areas (ex.

China) now dominate

manufacturing

– But not all LDCs are

increasing as rapidly in

second sector jobs

Tertiary

• Large % in MDCs

– Only sector likely to

grow in MDCs.

• Growing but much

smaller % in LDCs

Two Sometimes Additional Sectors

• Quaternary sector – intellectual,

data driven

– intellectual activities incl. govt., culture,

libraries, scientific research,

education, and info tech.

• Quinary sector

– highest levels of decision-making in a

society or economy incl. the top

executives or officials in such fields as

govt., science, universities, nonprofit,

healthcare, culture, and the media. Costa Rica

Job Sectors

• Productivity– Value of end-product compared to labor needed to make it

– MDCs are more productive than LDCs, Why?

• Mainly technology, but also skills and education

• Consumer goods– especially considered are communication and transportation

• MDCs = Accessible to all, vital for functioning of economy

• LDCs = not unknown but don’t play a vital role, more available/used

in urban areas connected to the core.

Automation (Movie Minority Report Factory Scene)

How to Measure to Development

-Consumer Goods

• By standard of living / consumer goods:

Hans Rosling Video

Motor Vehicles Per 1,000 Persons

Cell phones (good indicator?)

Smartphone or Computer with Internet

Computers per 1000

People Who Use the Internet

Iraq Example

Social Indicators of Development

• Education and Literacy

– Education

• be careful how these stats are presented!

• student-teacher ratio

– higher in LDCs

– teacher/student ratio in MDCs is higher

• $/student

– higher in MDCS

– but % of GDP spent on education is higher in LDCs

• Literacy (read and write) - Rate exceeds 98% in

MDC's while in LDC's the rate is less than 60%

Students Per Teacher, Primary School

Figure 9-6

Health and welfare

• Diet (adequate calories = 2,350)

• Access to health care

• Social safety net programs

Caloric intake as % of requirements

Health expenditures as % of GDP

Physicians per 1,000 persons

Demographic indicators of development

– Life expectancy

• How long babies born today can be expect to live

– MDCs = 70s, LDCs = 60s or less

– Other demographic indicators:

• All higher in LDCs, but decreasing

– Infant mortality = 6% (60) LDCs vs .5% (< 5) MDCs

– Crude birth rate = 23/1,000 LDCs vs 12/1,000 MDCs

– Natural increase = 1.5% LDCs vs 0.2% MDCs

• Except CDR (Crude death rate)

– More equal due to diffusion of modern medicine

– More equal because death rate goes up due to higher

elderly population in MDCs» MDCs slightly higher around 10 (more elderly)

» LDCs around 8

How a Population Pyramid WorksThe Basics

Population as an Indicator of

Development

Time

Stage 1 Stage 2 Stage 3 Stage 4

Natural

increase

Birth rate

Death rate

Life expectancy (2009)

Infant mortality rate

Natural Increase Rate

Crude Birth Rate

Progress Toward Development

How does Gender affect Development ?• From 1995 – 2010

– Gender-Related Development Index (GDI)

• Compares women’s development with that of both sexes

• Criticized as too dependent on income

• It addresses gender-gaps in life expectancy, education, and incomes.

– Gender Empowerment Measure (GEM)

• Compares the involvement of women in decision-making roles in

politics and economics

• based on estimates of women's relative economic income,

participations in high-paying positions with economic power, and

access to professional and parliamentary positions.

• It was introduced at the same time as the Gender-related

Development Index (GDI) but measures topics like empowerment

that are not covered by that index.

GII

• Current– Gender Inequality Index (GII) based on three factors:

• Reproductive health

– Maternal Mortality Ratio (MMR) – per 100,000 births

– Adolescent Fertility Rate (AFR) – # per 1000 (15-19)

• Empowerment

– Share of parliamentary seats

• Labor market participation

Gender Empowerment Measure (GEM)

Gender-Related Development Index (GDI)

Gender Inequality Index

Demographic Indicator of Gender

Difference: Life Expectancy

Economic Indicator of Empowerment:

Professionals

Lower GII = higher development.

Why?

• It leads to smaller family sizes

– Women who have more educational and

economic opportunity have less children

– Lower dependency ratio

– More economic investment

• GNI is higher

– women are included in the formal economy

become major economic assets.

What Does Gender Population

Mean about a Country

All of these can be affected by

uneven development

• Differing HDI

values within

Brazil.

• Rural versus

urban

• Interior versus

coastal

• Affects: culture,

gender roles,

access

Where Do We Find Uneven Development?

Uneven Development

• Often worse in

countries that

are rapidly

developing

• Urban areas

connected to

MDCs through

globalization

• Rural to Urban

migration

Gini Coefficient

A measure of statistical

dispersion intended to

represent the income

distribution of a nation's

residents, and is the

most commonly used

measure of inequality

GlobalizationDefinition: is the process of interaction and integration between

people, companies, and governments worldwide. Globalization has grown

due to advances in transportation and communication technology. With

increased global interactions comes the growth of international trade,

ideas, and culture. Globalization is primarily an economic process of

interaction and integration that's associated with social and cultural

aspects.

Traits• Dependency

• Uneven Development

• Time-Space Compression

• TNC MNC

• Pop Culture Diffusion

• Increased Transportation

• Networks

Containerization and Trade

Cell Phone and Internet Adoption

Smaller World

Globalization and TNCs

Globalization: An incomplete

Defintion (make a better one)A set of processes that are:

- increasing interactions

- deepening relationships

- heightening interdependence

without regard to

country borders.

A set of outcomes that are:

unevenly distributed

varying across scales

differently manifested

throughout the world.

Globalization

Globalization refers to the

increasing unification

of the world's

economic order

through reduction of

such barriers to

international trade as

tariffs, export fees, and

import quotas

The term is most closely

associated with the term

economic globalization:

the integration of

national economies into

the international

economy through trade,

foreign direct investment,

capital flows, migration,

the spread of technology,

and military presence

The term can also

refer to the

transnational

circulation of

ideas, languages,

or popular culture

through

acculturation.

HDI Map Activity

Questions1. Take your map and fold it lengthwise along the 30°N line of latitude (this is

approximately the northern coast of Africa through the panhandle of Florida and

extending roughly along the Mexican-American border in the southwestern United

States). Flip your paper back and forth and then make a conclusion about how the

level of human development is different in the area above the fold from and the area

below it. Make a list of differences.

• Afterwords, cite specific evidence to support your overall conclusions.

2. Go into the earlier part of this

PowerPoint and research Brandt

Line. Explain what it depicts visually.

Looking at the pictures and

descriptions in this PowerPoint and

use the internet as well, what do you

think are the main tenets of the

Brandt Line?

3. What are the characteristics of a

developing country versus the

characteristics of a developed

country? (use your development

indicators)

4. How does the Cold War relate to

the Brandt Line? How is the Brandt

Line a product of the 1980s? (use

the line as drawn on the map)

5. How does population structure relate

to the Brandt Line and how can we

measure to tell differences between

countries through population structure

and statistics or indicators related to

population structure?

6. What would a cartogram show if the

Brandt Line was used on that instead of

a map? Explain how this would be

expected given the traits of countries

above and below the Brandt Line.

7. How are some Eastern European

countries an exception to the Brandt

Line today? (Rubenstein Old Version

231 – 232, 283)

8. How are some Asian countries an

exception to the Brandt Line? How did

that occur? (Rubenstein 296-7)