How Do You Define and Measure Development? 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 Domestic Product (GDP)-Measure of the total value of the officially recorded goods and services produced with a country by the citizens and corporations in a given year Gross National Income (GNI)-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 Then divide by the total population of each country to get per capita, “by head” to get an average dollar amount.

Issues with Measuring Economic Development Formal economy, think forms, applications The legal economy that governments tax and monitor Counted in all measures of economy Informal economy, “Black Market” or “Underground”, usually cash based The illegal or uncounted economy that governments do not tax or monitor; bootleg DVD’s & pirated software & Sr. Helote. Not included in measures of economy

Other Ways…. Occupational structure of the labor force (employment in sectors of the economy; Primary/Agriculture, Secondary/Manufacturing, Tertiary/Services). Productivity per worker (production divided by total labor force=iPods per worker) Transportation and communications facilities per person (per capita index of transportation and communications per person) Dependency ratio (dependents, young and old, that each 100 workers must support)

Dependency Ratio, 2007 A measure of the number of people under the age of 15 and over the age of 65 who depend on each working-age adult

Development Models Implication or assumption of “Progress”=technology & more stuff Similar path or process in all countries Walt Rostow’s Modernization model Traditional-agriculture, rigid society Preconditions of takeoff-why don’t we try something else like paving roads? Takeoff-urbanization and industrialization Drive to maturity-few left in agriculture High mass consumption-Core, Stage late 3, 4

How Does Geographical Situation Affect Development? Importance of context: What happens at state, local, global scale Colonialism Diffusion of idea of the state Dependence of colonies on rulers Wealth to ruling countries Neo-colonialism: Continuation of economic dependency despite political independence, think Libya selling most of its oil to Italy its former colonizer Structuralist theory: Difficult-to-change, large-scale economic arrangements

Dependency Theory Development possibilities limited by Political and economic relations between regions and countries Dependency of former colonies on former ruling countries for loans, markets, migration, etc. Reinforcement of dependency despite political independence Dollarization: Replacing local currency with currency of a wealthy country USD in El Salvador and Vietnam Little hope for development in countries dominated by wealthy powers

World-Systems Theory: Three-Tier Structure Core =USA Processes that incorporate higher levels of education, higher salaries, and more technology Generate more wealth in the world economy Periphery =El Salvador Processes that incorporate lower levels of education, lower salaries, and less technology Generate less wealth in the world economy Semi-periphery =Mexico Places where core and periphery processes are both occurring Places that are exploited by the core but then exploit the periphery Serves as a buffer between core and periphery

What Are the Barriers to and the Costs of Development? Millennium Development Goals Eliminate extreme poverty and hunger Achieve 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

Human Development Index includes GDP per capita, literacy, life expectancy

Barriers to Development Social conditions Foreign debt and structural adjustment loans from World Bank, IMF, commercial banks and states/countries Political instability-not much development going on in the Middle East right now.. Widespread disease (e.g., malaria)-AIDS in sub-Saharan Africa,

Costs of Economic Development Industrialization Air and surface water pollution as old tech cheaper and more polluting Export Processing Zones (EPZs) tax/duty free! Maquiladoras on the border of US & Mexico Special economic zones (SEZs): Shenzhen! Locations geared to export markets: coastal areas can be more ecologically sensitive, but access to world market needed. Remember S. Sudan

Costs of Development Agriculture Tourism Pesticides: DDT Desertification: desert keep growing like cities Production for export rather than local markets can lead to states not being able to feed itself Tourism Pollution: golf courses need pesticides, herbicides, fertilizers; rain forest becomes hotel Narrow benefits, most jobs un- or low skilled and low paying Damage to local cultures

How Do Political and Economic Institutions Influence Uneven Development Within States? Get involved in world markets Price commodities Affect whether core processes produce wealth Shape laws to affect production Enter international organizations that affect trade Focus foreign investment in certain places Support large-scale projects

Islands of Development Government islands: Capital cities such as Brasilia, Washington DC, Abuja Corporate islands: Disney World, tech campuses such Microsoft, Infosys Non-governmental organizations (NGOs) Private, usually non-profit charity organizations seeking to fix imbalance Microcredit programs: mini loans to individuals for small cottage businesses