AgendaAgenda►Questions?Questions?►ReviewReview►Global Economic Development (Chap Global Economic Development (Chap

3)3) Digression on global communications and Digression on global communications and

geodesygeodesy►Processes of change (the third)Processes of change (the third)

►TechnologyTechnology

Economic Development ProcessEconomic Development Process Rostow’s ModelRostow’s Model CriticsCritics

TodayToday

Regional Economic ChangeRegional Economic Change► Geodesy problemGeodesy problem► Rostowian internal growth theoryRostowian internal growth theory► Economic BaseEconomic Base

Staples Theory in CanadaStaples Theory in Canada

p.46p.46

24,902 mi

1,038 mph

Circ=πd

The problem:The problem:

►How fast is our communications How fast is our communications satellite moving, 22,000 miles above satellite moving, 22,000 miles above the equator? the equator?

The satellite is traveling at…The satellite is traveling at…

►6,794.2 mph6,794.2 mph

Critics of Rostowian ViewCritics of Rostowian View

► Rostowian view is part of Modernization Rostowian view is part of Modernization Theory:Theory: Science, reason and technology free us Science, reason and technology free us

from scramble for subsistencefrom scramble for subsistence Nation state will create the pre-conditions Nation state will create the pre-conditions

for take-offfor take-off

► Has it happened? Has it happened? Manufacturing in developing countries e.g. Manufacturing in developing countries e.g.

China China NICsNICs

Under development persistsUnder development persists

Grinding povertyGrinding poverty Benefits uneven: Inequality within LDCsBenefits uneven: Inequality within LDCs Lack of access to basic nutritional, health, and Lack of access to basic nutritional, health, and

education needseducation needs Environment degradationEnvironment degradation Totalitarian governmentTotalitarian government

► Yet much of the developed world enjoys the Yet much of the developed world enjoys the high mass consumption phasehigh mass consumption phase

► Dependency and underdevelopment are active Dependency and underdevelopment are active processes resisting any real form of take-off processes resisting any real form of take-off

Where are the trees? 19Where are the trees? 19°N°N

Reuters photo

Rostow: An Internal Growth Rostow: An Internal Growth TheoryTheory

► A “thousand points of light”A “thousand points of light”► From subsistence to local tradeFrom subsistence to local trade► growing incomes stimulate growing incomes stimulate

manufacturingmanufacturing► and competitive advantageand competitive advantage► reinforced by economies of scale.reinforced by economies of scale.►Market areas develop around Market areas develop around

settlements and urban areas emerge.settlements and urban areas emerge.

Trade Trade centres centres with a with a linear linear

marketmarket

Trade centres with a linear Trade centres with a linear marketmarket

Trade Trade centres centres with a with a linear linear

marketmarket

Export Base TheoryExport Base Theory

► Basic industries exportBasic industries export Compete internationally initially because Compete internationally initially because

of favourable resource baseof favourable resource base Regional specialization and economies of Regional specialization and economies of

scalescale Growing interdependency as trade Growing interdependency as trade

increasesincreases

►Non-basic industries develop to serve Non-basic industries develop to serve basic sector e.g. servicesbasic sector e.g. services

Staples TheoryStaples Theory

► A Canadian theory of Harold Adams InnisA Canadian theory of Harold Adams Innis► Staple: a crude commodity or resource Staple: a crude commodity or resource

productproduct► Staples emerged at different times and Staples emerged at different times and

placesplaces► With distinctive upstream and With distinctive upstream and

downstream linked industriesdownstream linked industries► Influencing regional economic Influencing regional economic

development development

Global demand for Staples has regionalized impacts in Canada