Download - Haiti and Japan Earthquake Comparison
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Haiti and Japan Earthquake Comparison• Magnitude
– Haiti-7.0– Japan-9.0 which
caused a Tsunami• Left Homeless– Haiti- 1.5 million– Japan- 1-2 million
• Death– Haiti- 220,000– Japan- 15,000
• Cost– Haiti- $14 billion– Japan- $230 Billion
• Additional Effects– Haiti-Cholera
epidemic as a result 6,000 more died, 216,000 were infected
– Japan-Much of their Nuclear power is still damaged with many people evacuated from surrounding towns
–Hawk Hook 2/27• Our next unit is
on development, how do you think development played a role in these statistics?
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Development: Models of
Economic Growth, Diffusion, and
World Variations
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Basic Development Info
• Definition of Development: process of improving the material conditions of people through diffusing knowledge and technology• Continuous process of
improvement • MDC’s: developed
countries• LDC’s: developing
countries
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Indicators of Development
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• UN measure of Development: level of development is a based on 3 indicators: economic, social, and demographic
Human Development Index
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Overview of HDI:• 1 Economic Factor:• Gross Domestic Product (GDP):
the total value of goods and services produced in a country
• 2 Social Factors:• Literacy Rate and Amount of
Education (average # of school years attended)
• 1 Demographic Factor• Life expectancy (average # of
years a newborn can expect to live)
• Highest Possible HDI is 1.0 or 100%
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• What country do you believe has the highest HDI?–Norway at .938 in 2010
• What country do you believe has the lowest HDI?– Zimbabwe at .140
• Where do you believe the 2 dozen lowest ranking countries were located? Why?– Sub-Saharan Africa
Current World Trends (Overview)
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The US Situation
• Ranked 4th
• What do you believe accounts for this rank?• Near the top in GDP and
Literacy• Lower in Education and
Life Expectancy• High School Drop-out Rates
and Inadequate Health Care for low-income people
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Economic Indicators of Development
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1. GDP2. Types of Jobs Available 3. Productivity of workers 4. Access of raw materials5. Availability of
consumer goods• Goods purchased to
satisfy immediate wants and needs
• What are some examples?
5 Economic Indicators of Development
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• Use per capita GDP (how much each person’s portion of the GDP is) • Figured by
dividing GDP by population• EX: GDP = $100
and population = 10, then each person receives, on average, $10
Gross Domestic Product
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• Average per capita GDP in MDC’s $27,000–Has increased 55% since 1990
($10,000)–US: approx 40,000
Per Capita GDP MDC’s
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• Average per capita GDP in LDC’s: $4,000–Has increased 450% since 1990 (bit under $4,000)–Not equal growth China huge changes, Africa few– 18 countries (15 in Africa, 3 in Asia) below $1000
Per Capita GDP LDC’s
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• Why is per capita GDP not an adequate measure of development on its own?• Measures average wealth not
distribution• If few people hold all the wealth then
standard of living for most lower than average would indicate
Critical Thinking Question
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• What are the 3 sectors of the economy? Where is each most prevalent?
Types of Jobs Available
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• Productivity: value of a product compared to the amount of labor necessary to make it
• Higher in MDC’s• Produce more with less
effort• Why?
• LDC’s rely more on human and animal labor
Productivity of Workers
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Access to Raw Materials
• Includes access to minerals, trees, energy sources (oil, coal, natural gas, or uranium for nuclear power)
• Indicates potential for Development not actual development
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• Using real world examples how can the availability of natural resources not be a perfect indicator of level of development?• Ex: Japan, Singapore, South Korea, and
Switzerland have few natural resources but have become highly developed through trade• Much of Africa is rich in natural
resources but lacks the infrastructure to be considered developed states
Critical Thinking Question
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• Industrial Revolution• Occurred in countries rich in
both natural resources and energy sources (Ex. UK)
• Colonialism and Imperialism• Occurred to create steady
supply of resources in resource depleted Europe
• Sustained development in Europe, hindered it in Africa and Asia• Why is this flow a problem for
development in the LDC’s?
Historical Relationship btwn
Resources and Development
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Consumer Goods
• Most important consumer goods to consider: transportation and communication technologies• Examples?• Why?
• Transportation: access to jobs and distribution of products
• Communication: telephones and computers enhance communication between suppliers, producers, and sellers
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Consumer Goods and MDC’s versus LDC’s
• How accessible are consumer goods to MDC’s?• Virtually all citizens• VITAL to business of tertiary and
secondary jobs• How accessible are consumer
goods to LDC’s?• Not as available• Not as important for subsistence
living (creating just enough food to live with little extra)
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• Access to consumer goods creates gap between the “haves” and “have-nots” in LDC’s– Typical Characteristics of
Haves:• Higher Economic Status:
government officials, business owners, elite classes• Live in urban areas (more
variety of job opportunities requiring additional technology)
–Have- Nots?• Usually rural areas engaging
in primary sector work or simple services
Haves and Have-nots in the LDC’s
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• How can transportation and communication technologies increase educational opportunities and leisure activities?
Critical Thinking Question
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Social Indicators of Development
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• Economic Development = Great Wealth• Spend portion of wealth on social services
(schools, hospitals, welfare services) = Smarter, healthier, and secure workforce = more economic productivity
Reciprocal Relationship Btwn Economic and Social
Development
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• Measured by quantity and quality of education• Quantity: Number of years of
schooling• Quality: student/teacher ratio
and literacy rate• Education number one way
to improve economy• Better education = highly
qualified workforce = higher wages = better access to consumer goods = higher standard of living
Education and Literacy
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MDC’s compared to LDC’s
• Quantity• MDC’s = 10 years• LDC’s = 2-3 years
• Student/Teacher Ratio• Twice as high in
LDC’s• Literacy Rate• MDC’s = > 98%• LDC’s = < 60%
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• MDC’s: > 8% of GDP spent on healthcare–More doctors, hospitals, and nurses per
capita –Most of Europe: private individuals
responsible for 30% of their healthcare costs
– Public assistance (unemployment compensation, welfare, etc) Greatest in North Western Europe (Norway, Sweden, Denmark)
Health and Welfare, MDC’s
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Health and Welfare, LDC’s
• LDC’s: <6%– Private individuals responsible for 50%
of their healthcare• US exception: private individuals
responsible for 55% of their healthcare costs
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• Why are MDC’s struggling to maintain their levels of public assistance? What choice are they facing?• Growing Elderly Population: more
people to assist• Economic downturn cannot fund
generous programs initially in place• Choice between reducing benefits or
increasing taxes
Critical Thinking Question
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FRQ Practice 3/51. Complete Sentences: Resources and
DevelopmentA. How do resources relate to the
development of a country?B. How did resources influence the
following:i. Industrial Revolutionii. Colonialism/Imperialism
C. How has the availability of resources and history affected the following economies:i. Japan ii. Africa
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Demographic Indicators of
Development:Reflection of Health and Education
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• LDC: 60’s• MDC: 70’s• What is the typical shape of the population
pyramid for an LDC?• What responsibilities do the governments of these
countries have?• What is the typical shape of the population
pyramid for an MDC?• What responsibilities do the governments of these
countries have?
Life Expectancy
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Infant Mortality Rate• MDC’s: 99.5%
survive• LDC’s: 94%
survive–Result of:
malnutrition after birth, lack of medicines and immunizations, lack of education of clean medical practices
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• LDC’s: 1.5%• Struggle to provide care for growing
population• MDC’s: .01%
Natural Increase Rates
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• LDC’s: 24 per 1,000• MDC’s: 11 per 1,000–Why lower rates?• Access to birth control and social
reasons in LDCs
Crude Birth Rate
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Critical Thinking Question
• Why does the Crude Death Rate not indicate a society’s level of development?• Diffusion of medical
practices has reduced instances of diseases in LDC’s
• MDC’s have a higher % of elderly
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Worldwide Regions of
Development
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Regions of Development• 11 Regions based on
Development• 5 Developed Regions• 6 Developing Regions
• North-South Split: Almost all MDC’s exist above 30* N Latitude and LDC’s below• Exceptions: Australia in
South, Part of Middle East and East Asia in North
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• More Developed Regions• Anglo-America• Western Europe• Eastern Europe• Japan• South Pacific
• Less Developed Regions• Latin America• East Asia• Middle East• South East Asia• South Asia• Sub-Saharan Africa
Regions Overview
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More Developed Regions
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• HDI: .94• Cultural Patters–Homogenous• 90% speak English and
adhere to Christianity• No large minorities to be
discriminated from economy
– Exceptions• French speaking Québécois• Some intolerance against
ethnic minorities
Anglo-America
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Anglo-America Cont’
• Access to Resources• Major producer of steel,
automobiles, etc.• Leading consumers of
world market
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• Loss of Manufacturing• Leading provider of: financial
services, high-tech jobs, entertainment, and recreational services (media, sports, etc)
• Most important food exporter
Adaptation to Global Economy
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Western Europe• HDI: .93• Cultural Patters• Strong Nation-States
(historical conflict WWI and II)
• Currently more unified politically, militarily, economically, and culturally • What are the two main
treaty organizations in Europe?
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• NIR: at or below 0– Population Growth
from Muslim and Hindi migration resulting in cultural diversity
• HDI lower than Anglo America bc of periphery– Spain, Portugal,
Southern Italy, and Greece
–Other nations at or above Anglo American level
Western Europe Cont’
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• Must import much of its raw materials
• Compensates by producing luxury items: insurance, banking, BMW , Mercedes
• Sacrifice economic growth for social services
Adaptation to Global Economy
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• HDI: .80–Only region where HDI
has declined near LDC levels now
– Legacy of the “Iron Curtain” of Communism• Didn’t invest in long-term
economic improvements (modernizing)• Inefficient agriculture
(import food)• Pollution • Centered on basic
industry not consumer goods
Eastern Europe
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Eastern Europe Cont’
• Border Countries (Czech Republic, Poland, Hungary, Slovakia, Slovenia) better transition from Communism
• May become part of Western Europe or new region of Central Europe
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• Declining HDI in other Eastern European Nations result of:• Closing inefficient
businesses: rising unemployment
• Inflation: no government subsidies
• Larger gap between rich and poor
Eastern Europe Cont’
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Eastern Europe Cont’
• Ethnic Disputes• Ethnic identities
suppressed during Communism
• End of Communism unleashed issues• Breakup of Soviet Union,
Czechoslovakia, and Yugoslavia
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• HDI .94• Resources– VERY few natural resources
compared to population–HIGH physiological density– Leading steel producer but most
import iron ore and coal
Japan
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• Greatest Resource– Large population
working for low wages• Could sell products in
other countries at prices lower than domestic competitors • Now foothold in high-
end electronics and automotives
–High investment in education and training, research and development
Japan Cont’
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• HDI: .87• Why does the South Pacific
have little influence on the Global Economy? (Think Situational problem)– Lies on the periphery of other
MDC’s– Few inhabitants
• Large Exporter of Food• Culture shared with Colonial
Powers of Western Europe (some indigenous cultures)
South Pacific
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Less Develope
d Regions
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• HDI .80• Cultural Patterns• Speak Spanish or
Portuguese• Roman Catholic• Mix of Spanish,
Portuguese, Indigenous Cultures, and African peoples
Latin America
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Latin America Cont’
• More urbanized than other LDC’s• 3 of the 10 largest cites:
Mexico City, Sao Paulo, Brazil, and Buenos Aires
• Especially along Atlantic coast
• Good agricultural development
• Large gap between rich and poor• Control much of land, rent
to small tenant farmers
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• HDI: .76• Economy Driven by
China:• largest per capita GDP
growth in the world• Lower wages than MDC’s:
industrial explosion• Driving down prices of
consumer goods and worldwide wages
East Asia
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• Regional Economic Inequalities• Coastal region much higher
development than interior• Rising consumption of
natural resources• Increased pollution
East Asia Cont’
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Middle East
• HDI: .68• Site Problems: much
is desert with little natural resources• Must rely on imports
• Ideal Site: OIL!• Creates trade surplus• Gap between
petroleum exporting countries and those without this resource
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• Goal: promote development respectful of traditional Islamic traditions• Hindrance to higher HDI
• Lack of Political Freedom • Low education and literacy
rates (especially for women)• No interest banking• Disputes: Shiites and
Sunnis, Israel, Terrorism
Middle East
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Southeast Asia• HDI: .58• Highest
concentration of population: Island of Java in Indonesia• Site Perks: fertile
soil from volcanic activity, former first Dutch colony
• Constant War: Vietnam, Cambodia, Japanese and European occupations
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• Overall Site Problems:– Tropical Climate (little grain production)– Poor Soil–Mountainous, volcanoes, typhoons,
tsunamis• Population Explosion after influx of
Western medicines
Southeast Asia Cont’
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• Main products: – harvesting
products used for manufacturing (fibers for ropes, clothing, oils, etc)
• Manufacturing:– Cheap labor:
textile industry
Southeast Asia Cont’
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South Asia• HDI: .58• Second Highest
Pop• Second Lowest
per capita income• High NIR• High population
densities
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• High in resources but still population too high for sustainability
• Agricultural Productivity dependent upon Monsoon rains (good when they come BAD when they do not)
• India 4th largest economy– The growth of their
economy has been a result in an expansion of what sector of the economy?• Tertiary: service jobs
South Asia Cont’
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• HDI: .51• Low population densities• Major source of minerals and natural resources• Least prospect for development: high poverty,
poor health, low education (deteriorating)
Sub-Saharan Africa
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Sub-Saharan Africa Cont’
• How has the legacy of Colonialism Affect Sub-Saharan Africa?• Resources only
for European factories
• Superimposed Political Boundaries
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• Situational Problems:• Landlocked states
incapable of easy exportation
• Site Problems• Climate: Tropical or
Dry• What does this mean
for its physiological densities and their capacity to feed their people?
• How does Sub-Saharan Africa’s NIR affect this problem?
Sub-Saharan Africa Cont’
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Hawk Hook 3/81. Why are literacy rates a good
measure of development?2. What does education mean for
increasing GDP?3. Looking at the areas of
development in the MDCs, how does cultural homogony relate to development? (Provide 2 examples to support your theory).
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Gender Inequality and Development
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• Gender-Related Development Index (GDI): compares level of development of women to that of men–Measures standard of living and
well-being–Uses same measures as HDI• Adjusted to reflect gender differences• Penalized for gender disparity
–How do you think GDI compares to HDI worldwide?• Similar: Top Norway and other top HDI
countries, Lowest in Sub-Saharan Africa
Measures of Gender Inequality
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• Gender Empowerment Measure (GEM): compares ability of women and men to participate in economic and political decision making–Measures ability of
women to participate in developmental improvements
– Less women in these roles in EVERY country
Measures of Gender Inequality
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Gender-Related Development Index
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Economic Indicator of GDI
• Incomes of women lower in EVERY country
• MDC’s: women 2/3 income of men
• LDC’s: varies but considerably lower than MDC levels
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• Number of School Years Attended:– Secondary Ed: nearly even in MDC’s (99/100 men); in
LDC’s (60/100 men)– Middle East and Sub-Saharan Africa: < 33% of girls
attend school• Literacy
– MDC’s near universal for all men and women– Sub-Saharan Africa and Middle East: substantially low
Social Indicators of GDI
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• Life Expectancy: Who usually outlives who?
• 6 year gap in MDC’s• 1-2 year gap in LDC’s
Demographic Indicators of GDI
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Worldwide GDI Trends
• Gap lessoning everywhere–¼ in MDC’s– 2/3 in LDC’s
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Gender Empowerment Measure
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• Percentage of women occupying professional and technical jobs–Why not primary sector jobs?• Northern Europe: > 50% to women• LDC’s < 50%
– Also look at GDP per capita
Economic Indicators of GEM
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Political Indicators of GEM• % of managerial and
administrative positions– Why do these show
political influence?– North America, Northern
Europe, and South Pacific: 1/3
– LDC’s: ¼• % of women elected to
public office– Highest Northern Europe:
1/3 hold national offices– 1/5 in MDC’s– 1/10 in LDC’s
• Every Country Lower GEM than GDI: Meaning?
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Troubles Developing: the LDC’s
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• Adopting policies that cause development
• Paying for the development
2 Obstacles to Development:
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2 Policy Approaches
• Center on Self-Sufficiency • Focus on International Trade
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Self-Sufficiency: 3 Features of
the Balanced Growth
Approach
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• Spread growth over all economic sectors and all over the country–Modest
growth for all not large growth for some
Modest Growth
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Nationalize Business• Reduce number of international
corporations– Isolates local businesses from
international competition and MDC business and government policies
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• 3 Decisions– Tariffs (high taxes
on imported goods)• Makes domestic
products the cheapest
–Quotas (fixed number of imports allowed)
– Licenses • Buy ability to
import goods or export goods
Reduce Imports
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• What country do you believe used this model and was successful?– China (sort of)
• What country do you believe used this model and was unsuccessful?– India
Critical Thinking
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Problem: Inefficiency
• Reduces competition–No incentive to modernize or
improve quality because Governments subsidize and bail out failing industries and no other options for people to purchase
• Ex: Indian Auto Industry
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• Complex Government Controls inhibit entrepreneurship
• Financially easier to buy and sell on the black market
Problem: Large Bureaucracy
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International Trade Model; Rostow’s
Development Model: Exploiting your
assests
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Overview• W.W. Rostow’s 5-stage
model of development–Based on Following
beliefs:• All countries have gone
through these stages• International competition
encourages companies to continue improving• Abundance of resources in
LDC’s could be used to fund development
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• Society has not begun development
• High percentage of agricultural work
• National wealth towards “nonproductive” activities
• Religion and Military• Why are these “nonproductive”?
Stage 1: The Traditional Society
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• Well-educated leaders invest in infrastructure–Build water supplies, transportation,
invest in new technologies
Stage 2: Preconditions for
Takeoff
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Stage 3: The Takeoff• Rapid growth and improvement
in a few industries, 1-2 industries advanced and productive–Others still traditional
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• Diffusion of Technology into a variety of industries
• Workers become skilled and specialized
Stage 4: Drive to Maturity
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• Shift in economy from heavy industry: steel and energy to consumer goods
Stage 5: Age of Mass Consumption
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Critical Thinking• Throughout the history of the US, at what
point were we in each of Rostow’s stages?– Stage One:
• Colonial Times– Stage Two:
• Antebellum Period (Pre Civil War)– Stage Three:
• Mid 19th Century– Stage Four:
• Late 19th Century– Stage Five:
• Early 20th Century
• What country, we have recently talked about, used this model?– Japan– Others include South Korea, Singapore, Taiwan, and
Hong Kong
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Critical Thinking• Critical Thinking• According to Rostow, development requires
substantial investment in capital such as infrastructure like transportation systems, water, etc. However, for the economies of LDCs to grow, the right conditions for such investments would have to be created.
• • Question: Investments of aid from other
countries will only help LDCs develop if they have reached which stage of Rostow’s model? Why?
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• Not all resource prices rose higher than necessary commodities (Africa)– Few people at the top
rich, others remain poor
Problem: Uneven Resource
Distribution
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• Markets not growing (population and economic downturn)–No new markets to sell products– Competing for already
established markets
Problem: Market Stagnation
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Problem: Increase Dependence on
MDCs• Rely on MDC’s for
food, clothing, etc. bc only producing takeoff industries
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• Proven better method of development• GDP growth faster in LDCs using
this model• India, China, etc switch to this
model• WTO: World Trade Organization
developed to reduce barriers to trade
Positive International Trade Model: Truth in
Numbers
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Financing Development
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2 Methods for Funding
Development• Loans• Investments by Transnational
Corporations (article)–What were some of the positives and
negatives we discussed regarding Transnational Corporations?
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• 2 Major Loan Institutions:• UN Financial Institutions• World Bank
• Money for governments and financial institutions to implement transportation and social services
• To risky nations too poor to qualify for other loans
• International Monetary Fund• Helps build international reserves• Stabilize currency exchange rates• Help them pay for imports
Loans
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• Why loan money for infrastructure in a small underdeveloped foreign country?
• What do you think could be some of the problems with investing in these areas?–Money stolen– Spent on other things (arms, etc)– Can’t repay debt
Critical Thinking Question
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Fair Trade
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• Alternative to international trade model
• Creates standards that protect workers and small businesses in the LDC’s
Overview
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• Small worker owned businesses form cooperatives to better afford loans to build their businesses
• Fair Trade Organizations work straight with producers– Cuts out middle man fees–Higher wages to cooperatives
(producers)–Not always higher price for
consumers
Producer Standards
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Worker Standards
• Fair Trade requires:– Fair wages–Unionization–Minimum
environmental and safety standards
– Encouraged to invest profits in the community