Chapter 10Development

Created by Sarah Chase

Human Geography

How do you Define and Measure Development?

Commodity Chain- a series of links connecting the many places of production and distribution and resulting in commodity that it is then exchanged on the world market.

The generation of wealth depends on where along the commodity chain the production is taking place.

Each link along the chain has a certain value added to the commodity, producing differing levels of wealth for the place and the people where the production occurs.

How do you Define and Measure Development?

Formal Economy Informal Economy

• The legal economy that is taxed and monitored be a government and is included in the government’s Gross National Product.▫ Examples

Transactions Taxes

• Economic activity that is neither taxed nor monitored by the government and is not included in the government’s Gross National Product.▫ Examples

Garden Plot in Yard Black Market Illegal Drug Trade

Development Models

• Does not take geographical differences very seriously.• Is conceptualization of development has a Western bias.• Some of the poorer countries that the West views as

progress, can lead to worsened social and environmental conditions for the people in the poorer countries.

• Does not consider geography or interrelations across scales.

• The development model treats countries as autonomous units moving through a process of development at different speeds and not as actions at one scale influencing socioeconomics at another scale.

Critics argue that the model…

Development ModelsRostow- Modernization Model

• Many theories of development grew out of the decolonization movement in the 1960’s• His models assumes that all countries follow a similar path to development or modernization.• Stages• Traditional• Preconditions to Takeoff• Takeoff• Drive to Maturity• High Mass Consumption

Development ModelsRostow- Modernization Model-Stages

• Traditional- 1st • dominant activity is subsistence farming• The social structure is rigid and unchanging• The people resist technological advances

• Preconditions to Takeoff- 2nd • Progressive leadership moves the country towards

greater flexibility, openness, and diversification. •Takeoff- 3rd • Industrial Revolution takes place• Substantial Growth• Technological and mass-production breakthroughs occur• Urbanization increases

Development ModelsRostow- Modernization Model-Stages

•Drive to Maturity- 4th • Technologies diffuse• Industrial specialization occurs• International trade expands• Population grows slowly

•High Mass Consumption- 5th • High incomes• Widespread production of many goods and services• Majority of workers enter the service sector of the

economy

Modernization Model-Ladder of Development

How does Geography affect Development?

Dependency Theory- Holds that the political and economic relationships between countries and regions of the World control and limit the economic development possibilities of poorer countries.

• Theories argue that the dependency helps sustain prosperity of dominant regions and the poverty of others.

• Poorer countries tie their currency into a wealthier country’s currency.

• Theory sees little hope for economic prosperity in regions that have been dominated by external powers.

• Based on generalizations.

How does Geography affect Development?

Dependency Theory- Dollarization- The process where a country’s

currency is abandoned in favor of the dollar.

▫ El Salvador changed the colon for the dollar.

▫ It makes sense for El Salvador because the two countries were economically tied before dollarization. 2 million Salvadorians live in the USA and

send $2 million back to El Salvador annually. 2/3 of El Salvador’s exports go to the USA.

How does Geography affect Development?

Structuralist Theory- Holds that economic disparities are built into the system- people built, organized and structured the world’s economy in a certain way that can not be changed easily.

• The global economy brought into being a large-scale structures

Concentration of wealth in certain areas Unequal relations among places

How does Geography affect Development?

World Systems Theory- Proposes that social change in the developing world is inextricably linked to the economic activities of the developed world.

• Theory originated by Immanuel Wallerstein • Helps us understand the geography of development. • Geographers like the theory because it is sensitive to

geographical differences and the relationships among development processes that occur in different places.

• Three-Tier Structure▫ Core▫ Periphery ▫ Semi-Periphery

Three-Tier StructureCore Process

▫Process that generates wealth in a places because core processes require higher levels of education, greater technologies and higher wages and benefits.

▫Achieve higher levels of socioeconomic prosperity

▫Dominant players in the global economic game. ▫Need periphery countries to produce goods

cheaply

Three-Tier StructurePeriphery Process

▫Require little education, little technologies, and lower wages and benefits.

▫Generate little wealth▫Poor regions that depend on the core and do

not have much control over their own affairs, economically or politically.

▫Cannot easily climb the ladder of development

Three-Tier StructureSemi-Periphery Process

▫ Exhibit both core and periphery processes▫ Serve as a buffer between the core and periphery in

the world-economy▫ Exert more power than periphery countries but are

still largely influenced by core regions.

What are the barriers to and the costs of Economic Development?

Barriers to Economic Development ▫ Low levels of Social Welfare

Periphery countries have high birth rates and high death rates and low life expectancy

High level of disease from inadequate health care Lack of education result in high illiteracy rates

▫ Foreign Debt Poorer countries receive loans for personal gain

from corrupt leader and some went to fund programs.

Large Part of countries budget goes to paying loans

Global debt crisis for the poorer countries of the world.

What are the barriers to and the costs of Economic Development?

Barriers to Economic Development ▫Political Instability

Wide division between the wealth and the poor Both compete for power and control of

government Hard time establishing and maintaining

democracies. ▫ Widespread Disease

Make survival difficult, orphan children, and weaken the labor force.

Vectored diseases spread more easily in warm, moist climates of tropical environments

Large amount of people affected with Malaria in poorer countries.

What are the barriers to and the costs of Economic Development?Costs of Economic Developments• Industrialization

▫ Periphery and Semi-periphery have set up special manufacturing exports zones called export processing zones-EPZs

▫ EPZs offer favorable tax, regulatory, and trade agreements to foreign firms.

▫ Two of the best known zones are maquiladoras and special economic zones of China.

▫ North Atlantic Free Trade Agreement- NAFTA- facilitated the movement of service industries from the USA to Mexico

What are the barriers to and the costs of Economic Development?Costs of Economic Developments• Agriculture

▫ In periphery countries agriculture focuses on personal consumption or on production for large agricultural company.

▫Little is produced for local market ▫ Farmers are unable to afford fertilizers and

education levels are low ▫Soil Erosion is common▫Desertification is caused by humans destroying

vegetation and eroding soils through the overuse of lands for livestock and crop production.

What are the barriers to and the costs of Economic Development?

Costs of Economic Developments• Tourism

▫Tourism brings wealth and employment to countries.

▫Can have negative effects on cultures and environment

▫Visitors create hostility among the hosts ▫Multinational corporations limit the

opportunities of local businesses. ▫ A natural disaster can wipe out a tourism

industry

Why do Countries experience uneven Development within

States?Nongovernment Organizations NGOs• Often try to operate to improve the difficulties of

the people.• Are not run by the state or local government• Operate independently and are nonprofit• Each NGOs sets its own goals• Microcredit Program is where NGOs give loans to

poor people particularly women to start businesses.▫ This creates gender balance▫ Gives more financial power to women▫ Lower birth rates ▫ Improve malnourishment

Definitions •Gross National Product (GNP)- The total

value of all goods and services produced by a country’s economy in a given year

•Gross Domestic Product (GDP)- The total value of all goods and services produced within a country during a given year.

•Gross National Income (GNI)- Calculates the monetary worth of what is produced within a country plus income received from investments outside the country.

Definitions • Neo-Colonialism- the entrenchment of the

colonial order, such as trade and investment, under a new appearance.

• Trafficking-When a family sends a child or an adult to a labor recruiter in hopes that the family member will send money home.

• Structural Adjustment Loans- Loans granted by international financial institutions to countries in the periphery and the semi-periphery in exchange for certain economic and government reforms in that country.

• Vectored Diseases- A disease carried from one host to another by an immediate host.

THE END

Human Geography

Created by Sarah Chase