Chapter 10: Development
© 2012 John Wiley & Sons, Inc. All rights reserved.
Key Question
How is development defined
and measured?
© 2012 John Wiley & Sons, Inc. All rights reserved.
How Is Development Defined
and Measured?
• Wealth does not depend solely on what is
produced; it depends in large part on how and
where it is produced.
• A country that is developing is making progress in
technology, production, and socioeconomic wellbeing.
• Ways of measuring development fit into three
major areas of concern: development in economic
welfare, development in technology and
production, and development in social welfare.
© 2012 John Wiley & Sons, Inc. All rights reserved.
Gross National
Product (GNP)
Measure of the total
value of the officially
recorded goods and
services produced by the
citizens and
corporations of a
country in a given year,
both inside and outside
a country’s territory
Gross National
Income (GNI)
Gross Domestic
Product (GDP)
Measure of the total
value of the officially
recorded goods and
services produced within
a country by the citizens
and corporations in a
given year
Most common
measurement used
today
Measure of the
monetary worth of what
is produced within a
country plus income
received from
investments outside the
country
Minus income payments
to other countries

Wealth is not solely about what is produced
 It is about how and where it is produced as well

Measuring development includes 3 things:
 Economic welfare, technology & production, social welfare

Formal economy
 The legal and government documented economy (taxed)
 Counted in GNI

Informal economy
 The unaccounted-for, private and illegal economy
 Not counted in GNI

What connections can you make with the Three-Tiered World Systems
Theory?
Problems with GNI:
 Wealth is not evenly dispersed through classes and regions
 Does not factor in costs of production

Occupational Structure of
Labor (% in working force)

Worker Productivity

Transportation and
Communications Facilities
per person

Dependency Ratio
 A measure of the number of
dependents, young and old,
that each 100 employed people
must support
http://www.studyblue.com/notes/note/n/unit-6-vocabulary/deck/5285919
•
Stage One – TRADITIONAL – Subsistence – Static Society – Resist
Technological Change
•
Stage Two – PRECONDITIONS TO TAKEOFF – Progressive leadership moves
country forward – More openness and diversity
•
Stage Three – TAKEOFF – Industrial Revolution – Sustained Growth –
Urbanization increases – Technology increases
•
Stage Four – DRIVE TO MATURITY – Diffusion of Technology – Specialization –
International trade expands – modernization – population increases
•
Stage Five – HIGH CONSUMPTION – high incomes – widespread production of
many goods/services – Most work in service sector
Figure 10.5
Rostow’s Ladder of Development. This ladder assumes that all countries
can reach the same level of development and that all will follow a similar
path. Adapted with permission from: P. J. Taylor. “Understanding Global
Inequalities: A World-Systems Approach,” Geography, 77 (1992): 10–21.
© 2012 John Wiley & Sons, Inc. All rights reserved.
•
Eurocentric and Ameri-centric
•
Doesn’t account for regional differences within a country
•
Doesn’t account for cultural differences within a country
•
Doesn’t account for one-commodity economies
•
Neo-colonialism
• The major world powers continue to control the economies of the poorer
countries
•
Major bias that all economies will grow the same way developed countries
grew
•
Rostow believed all countries would grow in an orderly fashion like Japan
and Europe and the US did
Is the idea of economic development inherently
Western? If the West (North America and
Europe) were not encouraging the “developing
world” to “develop,” how would people in the
regions of the “developing world” think about
their own economies?
© 2012 John Wiley & Sons, Inc. All rights reserved.
In order to measure your understanding of today’s lesson
objective, please write a thesis statement for one of the
following lesson Essential Questions:
1. What is development?
2.
How do levels of development play into global wealth
inequality?
3.
What are the detriments of global wealth inequality?
4.
What models explain global development
phenomena?
Key Question
How does geographical situation
affect development?
© 2012 John Wiley & Sons, Inc. All rights reserved.

Neo-liberalism
 Private economic control
instead of run by state
 Led to state dependency on
private entity
 Many end up needing aid or
defaulting
Structuralist Theory
 A general term for a model of
economic development
 Economic disparities(inequalities)
among countries as a result of history
 Inequality of power relationships among
countries in the global economy
Dependency Theory
 Structuralist theory that claims
development of a state depends upon
the relationship between Core, SemiPeriphery and periphery
 Depends on truth of World Systems
Theory
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 areas.
•
Dollarization: the country’s currency, the colon, was abandoned in
favor of the dollar.
Figure 10.6
San Salvador, El Salvador. A woman and
young boy use dollars to pay for groceries in
El Salvador, a country that underwent
dollarization in 2001.
© AFP/News Com, Yuri Cortez.
© 2012 John Wiley & Sons, Inc. All rights reserved.
Geography and Context
•
•
•
•
•
Immanuel Wallerstein’s world-systems theory
Three-tier structure—the core, periphery, and
semiperiphery—helps explain the interconnections
between places in the global economy.
When core processes are embedded in a place,
wealth is generated for the people in that place.
Peripheral processes require little education, lower
technologies, and lower wages and benefits.
The semiperiphery exhibits both core and
peripheral processes, and semiperipheral places
serve as a buffer between the core and periphery in
the world-economy.
© 2012 John Wiley & Sons, Inc. All rights
reserved.
Key Question
What are the barriers to and
the costs of economic
development?
© 2012 John Wiley & Sons, Inc. All rights reserved.
What Are the Barriers to and the
Costs of Economic Development?
• United Nations Human Development Index:
goes beyond economics and incorporates
the “three basic dimensions of human
development: a long and healthy life, know
ledge and a decent standard of living”
• Several statistics, including per capita GDP,
literacy rates, school enrollment rates, and
life expectancy at birth, factor into the
calculation of the Human Development
Index.
© 2012 John Wiley & Sons, Inc. All rights reserved.
© 2012 John Wiley & Sons, Inc. All rights reserved.
1.
2.
3.
4.
5.
6.
7.
8.
Eliminate extreme poverty and hunger
Universal primary education
Promote gender equality and empower women
Reduce child mortality
Improve maternal health
Combat HIV/AIDS, malaria, and other diseases
Ensure environmental sustainability
Develop a global partnership for development
1. Social conditions
 Low life expectancy
 High dependency ratio
 High mortality rate
 Lack of resources/education
 Gender inequality
2. Foreign debt and structural adjustment loans
 Large amounts of money loaned to periphery/semi-
periphery countries
 Promised to reform economy and government
 Budget goes to repaying loans

Made peripheral countries dependent upon the
IMF and World Bank
 Unable to invest in development projects
3. Political instability
 Rich versus poor
 Dictatorships & military coups
 Fear
Widespread disease
 Mainly vectored
 Malaria most common
 DDT use
 Genetic engineering
150,000 children in periphery per month

Industrialization
 Air and surface water pollution
 Export Processing Zones (EPZs)
▪ Maquiladoras
▪ Special economic zones (SEZs)
Agriculture
 Pesticides
 Desertification
 Production for export
rather than local markets
 Tourism
 Pollution
 Narrow benefits
 Damage to local cultures

Key Question
How do political and economic
institutions influence uneven
development within states?
© 2012 John Wiley & Sons, Inc. All rights reserved.
How Do Political and Economic
Institutions Influence Uneven
Development within States?
• Regional contrasts in wealth are a reminder that
per capita GNI does not accurately represent the
economic development of individual places.
• The contrasts between rich and poor areas are not
simply the result of differences in the economic
endowments of places.
• Government policy frequently affects development
patterns.
© 2012 John Wiley & Sons, Inc. All rights reserved.
The Role of Governments
• The distribution of wealth is affected by tariffs,
trade agreements, taxation structures, land
ownership rules, environmental regulations.
• Government policies play an important role at the
interstate level, but they also shape patterns of
development within states.
• Government policy can also help alleviate uneven
development.
• Economist Pietra Rivola: The Travels of a T-Shirt in
the Global Economy: described the significant
influences governments have on the distribution of
wealth between and within states.
© 2012 John Wiley & Sons, Inc. All rights reserved.
Islands of Development
• In most states, the capital city is the political nerve
center of the country, its national headquarters
and seat of government.
• In many countries of the global economic periphery
and semiperiphery, the capital cities are by far the
largest and most economically influential cities in
the state.
• Some newly independent states have built new
capital cities, away from the colonial headquarters.
• Island of development: a government or
corporation builds up and concentrates economic
development in a certain city or small region.
© 2012 John Wiley & Sons, Inc. All rights reserved.
Figure 10.15
Putrajaya, Malaysia. Putrajaya is the newly built capital of
Malaysia, replacing Kuala Lumpur.
© Bazuki Muhammad/Reuters/Corbis.
© 2012 John Wiley & Sons, Inc. All rights reserved.
Field Note
“Before the 1970s, Gabon’s principal
exports were manganese, hardwoods,
and uranium ores. The discovery of oil
off the Gabonese coast changed all that.
This oil storage tank at the edge of Port
Gentil is but one reminder of a
development that has transformed
Gabon’s major port city—and the
economy of the country as a whole. Oil
now accounts for 80 percent of Gabon’s
export earnings, and that figure is
climbing as oil prices rise and new
discoveries are made. But how much the
average citizen of Gabon is benefiting
from the oil economy remains an open
question. Even as health care and
infrastructure needs remain unmet, the
French publication L’Autre Afrique listed
Gabon’s recently deceased ruler as the
African leader with the largest real
estate holdings in Paris.”
© 2012 John Wiley & Sons, Inc. All rights reserved.
Creating Growth in the Periphery of
the Periphery
• In the most rural, impoverished regions of
less prosperous countries, some
nongovernmental organizations (NGOs)
try to improve the plight of people.
• Each NGO has its own set of goals,
depending on the primary concerns
outlined by its founders and financiers.
• Microcredit programs give loans to poor
people, particularly women, to encourage
development of small businesses.
© 2012 John Wiley & Sons, Inc. All rights reserved.
Figure 10.17
Bwindi, Uganda. Women walk by a microcredit agency that
works to facilitate economic development in the town. ©
Alexander B. Murphy.
© 2012 John Wiley & Sons, Inc. All rights reserved.
Creating Growth in the Periphery of
the Periphery
• Some microcredit programs
are credited with lowering
birth rates in parts of
developing countries and
altering the social fabric of
cultures by diminishing
men’s positions of power.
• Microcredit programs have
been less successful in
places with high mortality
rates from diseases such
as AIDS.
Concept Caching:
AIDS sign—India
© 2012 John Wiley & Sons, Inc. All rights reserved.
© Barbara Weightman
Additional Resources
• Global Poverty
http://www.worldbank.org/poverty
• Gabon
http://www.learner.org/resources/series180.html#prog
ram_descriptions
Click on Video On Demand for Gabon: Sustainable
Resources?
© 2012 John Wiley & Sons, Inc. All rights reserved.
Chapter 12
INDUSTRY AND SERVICES
Key Question:
WHERE DID THE INDUSTRIAL
REVOLUTION BEGIN, AND
HOW DID IT DIFFUSE?
Industrial Revolution:
a series of inventions that brought new uses to
known energy sources, new machines to
improve efficiencies and enable other new
inventions.
eg.
steam engine
iron smelting
water pump
POWERED BY FOOT-PEDAL OR WATER FORCES
SOME INDUSTRIES DID DEVELOP PRIOR
TO THE INDUSTRIAL REVOLUTION
The Turn of the Century
The industrial Revolution had changed the
ways in which people worked.
By 1900, the upper classes in
industrialized countries had luxuries that
earlier generations had never known.
BEGINNING OF INDUSTRIAL REVOLUTION

When and where did the industrial revolution
begin?


In Great Britain in the mid to late 1700s
Why Great Britain?




Flow of capital
Second agricultural revolution
Mercantilism and cottage industries
Resources: coal, iron ore, and water power
BURNING COAL IN A VACUUM CREATES COKE (PURE BURNING
FUEL)
Flow of Capital into Europe, 1775
Needed flow of capital in order to fuel the industrial revolution.
Textiles
Production:
Liverpool and
Manchester
Iron Production:
Birmingham
Coal Mining:
Newcastle
Industry changed the way of life.
• Worldwide industrial production more than
tripled between 1870 and 1914.
• Three countries dominated the world
economy.
• Great Britain, Germany & The United States.
• Together these 3 countries would produce 2/3 of the
world’s manufactured goods in 1913.
Ironbridge, England
World’s first bridge made entirely of cast iron,
constructed in late 1700s.
New Sources of Power
• New kinds of energy was coming into use
in the late 1800s.
• Coal and steam were giving way to
electricity, oil, gasoline, and natural gas.
• The invention of the electric elevator
allowed architects to continue to build
higher and higher buildings.
Diffusion to Mainland Europe
In early 1800s, innovations diffused into mainland Europe.
Location criteria:
PROXIMITY TO COAL FIELDS
(N.FRANCE>N-C.GERMANY>CZECH>S.POLAND)
connection via water to a port
flow of capital
Later Diffusion
In late 1800s, innovations diffused to some regions
without coal.
Location criteria: access to railroad
flow of capital
ST. PETERSBURG –
RUSSIA’S OLDEST
MANUFACTURING CITY
Diffusion of
Industrial
Revolution
The Paris Basin is the Industrial base of France. Rouen (pictured
here) is at the head of navigation point on the Seine River.
Key Question:
HOW DO LOCATION THEORIES EXPLAIN
INDUSTRIAL LOCATION?
LOCATION THEORY

Location Theory – predicting where business
will or should be located.
Considers:
- Variable costs
- Friction of distance
LOCATION MODELS
Weber’s Model
Manufacturing plants will
locate where costs are
Hotelling’s Model
the least (least cost
Location of an industry
theory)
cannot be understood
Theory:
without reference to
other industries of the
Least Cost Theory
same kind.
Costs: Transportation,
Theory:
Labor, Agglomeration
(All three)
Locational
interdependence
Losch’s Model
Manufacturing plants
choose locations where
they can maximize profit.
Theory:
Zone of Profitability
TRANSPORTATION COSTS CRITICAL FACTOR IN BASING
REGIONAL INDUSTRY LOCATIONS
Losch’s Model
Zone of Profitability
MAJOR INDUSTRIAL REGIONS OF THE
WORLD BEFORE 1950
Flow of Capital into Europe, 1775
Needed flow of capital in order to fuel the industrial revolution.
EUROPEAN
COMMERCIAL
COMPANIES
CAUSED
COLONIAL
EXPANSION
WESTERN
AND
CENTRAL
EUROPE
50% ALL
GOODS
ENTERING
EUROPE THRU
TWO (2)
NETHERLAND
PORTS
MAJOR
DEPOSITS OF
FOSSIL
FUELS IN
NORTH
AMERICA
MAJOR MANUFACTURING
REGIONS OF NORTH AMERICA
SHIP TO RAIL/TRUCKS
AT PORTS IS THE
BREAK OF BULK
CONCEPT – New York
IN N.E. US
INDUSTRY
LOCATED
ALONG
THE
COAST
FOR IRON
IMPORT
American companies group/move to the
same area is the agglomeration factor
MAJOR MANUFACTURING REGIONS OF RUSSIA
MAJOR MANUFACTURING REGIONS OF EAST ASIA
THE “PITTSBURGH “(RUST) OF
CHINA IS SHENYANG
KANTO
PLAIN IS
JAPAN’S
MAIN
INDUSTRIA
L REGION
ALMOST 100%
NEED FOR
IMPORTED OIL,
etc
In JAPAN
Key Question:
HOW HAS INDUSTRIAL PRODUCTION
CHANGED?
POST-FORDIST
Fordist – dominant mode of mass production during
the twentieth century, production of consumer
goods at a single site.
Post-Fordist – current mode of production with a
more flexible set of production practices in which
goods are NOT mass produced. Production is
accelerated and dispersed around the globe by
multinational companies that shift production,
outsourcing it around the world.
GLOBAL DIVISION OF LABOR
Time-Space
Compression
Through improvements
in transportation and
communications
technologies, many
places in the world
are more connected
than ever before.
TIME-SPACE COMPRESSION

Just-in-time delivery
rather than keeping a large inventory of
components or products, companies keep just
what they need for short-term production and
new parts are shipped quickly when needed.

Global division of labor
corporations can draw from labor around the
globe for different components of production.
PRODUCTION OF TELEVISIONS

Three key elements in television production:
 TV
Research and design
 Manufacturing
>IN THE CORE REGIONS
components
 Assembly

Production of televisions has shifted across the
world over time.
NEW INFLUENCES ON THE
GEOGRAPHY OF MANUFACTURING

Transportation on industrial location

Regional and global trade agreements

Energy in industrial location
 CORE = HIGH TECH
 SEMI-PERIPHERY = ?????
 PERIPHERY = LABOR INTENSIVE
NO INDUSTRIALIZATION IN MIDDLE
EAST DUE TO LARGE OIL RESOURCES
Key Question:
WHERE ARE THE MAJOR INDUSTRIAL
BELTS IN THE WORLD TODAY AND
WHY?
Deindustrialization –
a process by which companies move industrial jobs to other
regions with cheaper labor, leaving the newly
deindustrialized region to switch to a service economy and
work through a period of high unemployment.
RUHR VALLEY IN major INDUSTRIALIZATION - 1930’s
NOW #1 IN EUROPE
Abandoned street
in Liverpool,
England, where the
population has
decreased by onethird since
deindustrialization
CHINA IS MAJOR RECIPIENT OF
OUTSOURCING
NEWLY INDUSTRIALIZED
China – major industrial growth after 1950
ASSISTED BY SOVIET PLANNERS DURING COLD WAR PERIOD
Industrialization in the 1960s was state-planned:
focus on: Northeast district
Shanghai and Chang district
CHINA’S NORTHEAST INDUSTRIAL AREA IS NOW A BIG “RUST”
BELT
Today, industrialization is spurred by companies
that move production (not the whole company) to
take advantage of Chinese labor and special
economic zones (SEZs).
SHANGHAI – 2nd INDUSTRIAL DISTRICT IN
CHINA; LARGEST CITY
As China’s economy
continues to grow, old
neighborhoods (right)
are destroyed to make
room for new buildings
(below).
Beijing, China
Key Question:
WHAT IS THE SERVICE ECONOMY, AND
WHERE ARE
SERVICES CONCENTRATED?
SERVICE ECONOMY
Service Industry –
Economic activity associated with the
provision of services – such as
transportation, banking, retailing,
education, and routine office-based jobs.
TYPES/LEVELS OF INDUSTRY
PRIMARY – LOCATED WITH THE SOURCE OF THE RESOURCES
SECONDARY – USUALLY TIED WITH MANUFACTURING
TERTIARY – SERVICE INDUSTRIES
QUATERNARY – DEALING WITH HIGH LEVELS OF TECHNICAL
SKILLS/KNOWLEDGE
GEOGRAPHICAL DIMENSIONS
OF THE SERVICE ECONOMY
New Influences on Location:
- Information technologies
- Less tied to energy sources
- MARKET ACCESSIBILITY IS MORE
RELEVANT for some and less relevant for
others because of telecommunications
- Presence of Multinational Corporations
Wal-Mart
Requires producers of goods to locate offices in the
Bentonville, Arkansas (Wal-Mart’s headquarters) area in
order to negotiate deals with Wal-Mart.
Proctor & Gamble
put their office in
nearby Fayetteville,
Arkansas.
How does the
presence of these
companies in the
region change the
region’s economy
and its cultural
landscape?
Nike
Headquartered in Beaverton, Oregon, Nike has never
produced a shoe in Oregon. Beginning in the 1960s, Nike
contracted with an Asian firm to produce its shoes.
ZERO WORKERS EMPLOYED IN THE MANUFACTURE OF SHOES IN OR.
Skopje, Macedonia
The swoosh is
ubiquitous, but
where is the shoe
produced?
Nike has a global
network of
international
manufacturing and
sales.
MODERN PRODUCTION
Outsourcing –
moving individual steps in the
production process (of a good
or a service) to a supplier, who
focuses their production and
offers a cost savings.
Offshore –
Outsourced work that is
located outside of the country.
HIGH-TECHNOLOGY CORRIDORS

An area designated by local or state
government to benefit from lower taxes and
high-technology infrastructure with the goal of
providing high-technology jobs to the local
population.
eg. Silicon Valley, California

Technopole – an area planned for high
technology where agglomeration built on a
synergy among technological companies
occurs.
NEAR UNIVERSITIES
eg. Route 128 corridor in Boston
EAST COAST “TECHNOPOLE” LOCATION – HI-TECH >> BOSTON
PLANO-RICHARDSON, TEXAS
TELECOM CORRIDOR IS JUST NORTH OF DALLAS