Modernization Model Walt Rostow, 1950’s Liberal model Development through international trade Suggests that all countries follow a similar path through economic development in a linear manner –Traditional –Preconditions to takeoff –Takeoff –Drive to maturity –High mass consumption

AP Human Geography Concepts of Development

What determines economic development? Resources Population Colonial status Geographic Location Climate

maquiladoras a maquiladora is a manufacturing operation in Mexico where factories import certain material and equipment on a duty-free and tariff-free basis for assembly, processing, or manufacturing and then export the assembled, processed and/or manufactured products, sometimes back to the raw materials' country of origin. Mexico’s system of maquiladoras is located along the Mexico-United States border. Maquiladoras are towns in Mexico where U.S. companies have factories, taking advantage of lower production costs. These towns are located close to the United States-Mexico border

What does development look like?

One–child policy The demographic transition model represents the transition of a country from high birth and death rates as the country moves through stages of economic development. China’s one-child policy greatly slowed the birth rate, so China is far ahead of other newly industrialized countries in terms of demographic transition. The one-child policy drastically reshaped the composition of China's people. So now they have a population that's basically too old and too male and down the line, maybe too few. So the too old issue is that right now China has a dependency ratio of about five working adults to support one retiree. That's pretty good, that's a very healthy ratio. In about 20 years that's going to jump to about 1.6 working adults to support one retiree, and that's because that big population boom that we talked about, that big cohort of people are all living longer and getting older and therefore hitting their 70s, 80s and 90s, so by the time 2050 comes around one in four Chinese people will be a retiree.

How is development measured? Gross Domestic Product Per Capita –aka GDP per capita –value of goods and services produced within a country within a given year –Other similar measures include GNP (broader value), PPP –Usually calculated in US dollars to allow comparisons between countries

Measuring Development Gross Domestic Product per Capita High human development25,167 Medium human development 1,237 Low human development358

Gross Domestic Product High Human Development

Gross Domestic Product Medium Human Development

Gross Domestic Product Low Human Development

How is development measured? Rates –Literacy –Infant mortality –Caloric intake –Natural increase –Inflation

How is development measured? Occupational Structure of the Workforce –PRIMARY (agriculture) –SECONDARY (industry) –TERTIARY (services) –QUATERNARY –QUINARY

Occupational Structure –China GDP $6,200 –agriculture 49%, industry 22%, services 29% –Australia GDP $32,000 –agriculture 3.7%, industry 26.4%, services 70% –Philippines GDP $5,100 –agriculture 36%, industry 16%, services 48%

Occupational Structure –Luxembourg GDP $59,143 –Agriculture 1%, industry 30%, services 69% –Singapore GDP $21,492 –agriculture 0%, industry 30%, services 70% –Equatorial Guinea GDP $5,900 –agriculture 20%, industry 60%, services 20%

Occupational Structure –Haiti GDP $346 –Agriculture 32%, industry 20%, services 48% –Malawi GDP $156 –agriculture 37%, industry 29%, services 34%

Other Measures of Development Unemployment The number of people who (in a given year) were not working but were available for work and had taken steps to seek work. In some circumstances where employment opportunities are particularly limited in a country, the last criteria ("had taken steps to seek work") may be relaxed.

Other Measures of Development Telephone Lines Number of subscriber lines (business and residential) plus public telephones per 100 inhabitants. This series is calculated by dividing the number of main lines by the population, and multiplying by 100.

Other Measures of Development Undernourished The percentage of the population whose food intake falls below the minimum requirement needed to meet dietary energy requirements on a regular Fourth world countries are the least developed and fifth world countries lack a formal government basis.

Other Measures of Development Television Receivers Number of television receivers and/or number of licenses issued per thousand inhabitants. Water Resources per Capita Average amount of water that is available per person from rivers and groundwater each year.

Offshore financial centers, such as those located in the Bahamas and Switzerland, allow companies and individuals to avoid taxes in the countries where they conduct business. They’re designed to promote business interactions and offer lower taxes and tariffs, which is attractive to companies and individuals who deal in large sums of money

Human Development Index Created by the United Nations Measures three types of factors: economic, social, and demographic –Economic factor selected GDP per capita –Social factors are literacy and amount of education –Demographic factor is life expectancy Factors combined for a maximum of 1.0 or 100% 2001: Norway #1 with.944

GNP Map

Concepts of Development Developed vs underdeveloped Developing? LDC vs MDC Gentrification is the process in which wealthy individuals and families move into formerly poor neighborhoods, renovating the areas, and making them more modern

Core Periphery Model Scholars argued for this new approach Sensitive to geographical differences and the relationships among development processes occurring in different places Focuses on economic relationships –Core –Periphery –Semi periphery

Core Periphery Model Core Regions –High levels of socioeconomic prosperity –Dominant players in global economic game  Anglo America HDI.94  Japan and the South Pacific HDI.93  Western Europe HDI.92  Eastern Europe HDI.78

Core Periphery Model Periphery –Poor regions –Dependent on the core –Do not have much control over their own affairs In 1997, a banking collapse in South Korea triggered an economic crisis across Asia, known as the Asian economic crisis. This led to deindustrialization in countries like South Korea and Japan

Periphery Regions  Latin America HDI.78  East Asia HDI.72  Southeast Asia HDI.71  Middle East HDI.66  South Asia HDI.58  Sub Saharan Africa HDI.47

Core Periphery Model Semi Periphery –Regions that exert more power than periphery regions –Dominated to some degree by core NAFTA stands for North American Free Trade Agreement. This agreement eased restrictions on trade between Canada, the United States, and Mexico

The North South Divide Based on the 1980’s Brandt Report. Suggested a simplified world contrast of development and undevelopment based on degree of industrialization and per capita wealth.

Models of Development Liberal Models –All countries are capable of development –Economic disparities are a result of short term inefficiencies in local or regional market forces

Models of Development Structuralist Models –Regional disparities are a structural feature of the global economy –Things have come to be organized or structured in a way and cannot be changed easily According to Immanuel Wallerstein’s world- systems theory, the modern network of countries engaged in trade and competition emerged when European nations began exploring the rest of the world in the 1600s

Modernization Model Walt Rostow, 1950’s Liberal model Development through international trade Suggests that all countries follow a similar path through economic development –Traditional –Preconditions to takeoff –Takeoff –Drive to maturity –High mass consumption

Traditional Not yet started development High % of people engaged in subsistence agriculture High % of wealth allocated to ‘nonproductive activities’ such as religion and military Rigid and unchanging social structure Resistence to technological change

Preconditions of Takeoff An elite group initiates innovative economic activity Country begins investing in new technology and infrastructure Stimulate increase in productivity Progressive leadership Goods are classified as durable or nondurable based on the amount of time a product can be used. Durable goods are those that can be used for three years; the use of nondurable goods is limited to under a year

Takeoff Rapid growth facilitated by a limited number of economic activities Some sectors of the economic structure remain dominated by traditional practices Industrialization, urbanization, mass production OPEC stands for Organization of the Petroleum Exporting Countries. It is not a trade agreement

Drive to Maturity Modern technology diffuses to wide variety of industries Industries experience rapid growth similar to the early takeoff industries Workers become more skilled and specialized Modernization in the core Population growth declines

High Mass Consumption Economy shifts from production of heavy industry such as steel and energy to consumer goods like refrigerators and motor vehicles High incomes and widespread production of a variety of goods and services Majority of workers in service sector of economy Quaternary economic activities are primarily concerned with information sharing and development

Dependency Theory Structuralist alternative to Rostow’s model Political and economic relationships between countries and regions control and limit the economic development of less well off regions Dependency helps sustain the prosperity of the dominant regions and the poverty of the lesser regions

Dependency Theory Little hope for economic prosperity in regions and countries that have traditionally been dominated by external power Based on generalizations that pay little attention to regional differences in culture, politics, and society The Human Development Index (HDI) is used by the United Nations to measure human welfare in a country. The HDI is calculated using a formula that takes into account social indicators as well as economic production

Colonization of Africa

Why do LDC’s face obstacles to development? Self-sufficiency International trade Financing development Deglomeration is the movement of economic activity away from an area of previous concentration. This occurs when the market becomes overloaded with businesses providing the same services or goods