DEVELOPMENT AND Economic geography

RESOURCES What are the kinds of resources available?

Natural Resources Renewable resources will replace themselves over time. Renewable resources will replace themselves over time. Soil, water, and forests Soil, water, and forests

Nonrenewable resources Will not replace themselves. Once they are used, they are gone. Will not replace themselves. Once they are used, they are gone. Fossil fuels (oil, coal, natural gas), and metals (gold, iron, copper, and bauxite) Fossil fuels (oil, coal, natural gas), and metals (gold, iron, copper, and bauxite)

Human Resources Human resources are man and his mind, and they depend on: Human resources are man and his mind, and they depend on: Level of education Level of education Is labor skilled or unskilled? Is labor skilled or unskilled? Are entrepreneurial or managerial abilities needed? Are entrepreneurial or managerial abilities needed?

Capital Resources Resources that can be used to make more, like money or tools Resources that can be used to make more, like money or tools the availability of money for lending the availability of money for lending the level of infrastructure, the level of infrastructure, the availability and use of tools, machines, and technologies the availability and use of tools, machines, and technologies

What are the effects of unequal distribution of resources? 1. Causes countries to specialize in the goods and services they produce. 1. Causes countries to specialize in the goods and services they produce. 2. Interdependence of nations -- they must trade with each other to acquire the goods they do not possess 2. Interdependence of nations -- they must trade with each other to acquire the goods they do not possess 3. Uneven economic development (rich and poor countries) 3. Uneven economic development (rich and poor countries)

The effects of unequal distribution of resources cont. 4. Energy producers and consumers 4. Energy producers and consumers 5. Imperialism (one country dominating another) 5. Imperialism (one country dominating another) 6. Conflicts over control of resources 6. Conflicts over control of resources

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

Two other ways of Measuring 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. Includes things produced inside and outside a country’s territory. Gross National Income (GNI) Measure of the monetary worth of what is produced within a country plus income received from investments outside the country. Now also includes remittances. ** Most common measurement used today.

Issues with Measuring Economic Development All measurements count the: All measurements count the: Formal Economy – the legal economy that governments tax and monitor. Formal Economy – the legal economy that governments tax and monitor. All measurements do not count the: All measurements do not count the: Informal Economy – the illegal or uncounted economy that governments do not tax or keep track of. Informal Economy – the illegal or uncounted economy that governments do not tax or keep track of.

Measuring Development Gross Domestic Product per Capita Gross Domestic Product per Capita High human development35000 Medium human development6000 Low human development358

Gross Domestic Product High Human Development United States CanadaFranceDenmark Lichten- stein 49,00041,10035,60037,600143,900

Gross Domestic Product Medium Human Development TurkeyPeruIndiaChinaKazakhstan 14,70010,2003,7008,50013,200

Gross Domestic Product Low Human Development NigeriaRwandaTogoMaliAfghanistan 2,6001, ,1001,000

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. 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. 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. Number of subscriber lines (business and residential) plus public telephones per 100 inhabitants.

Other Measures of Development Undernourished people The percentage of the population whose food intake falls below the minimum requirement needed to meet dietary energy requirements on a regular

Other Measures of Development Televisions Number of persons per television set Televisions Number of persons per television set Water Resources per Capita Average amount of water that is available per person from rivers and groundwater each year. Water Resources per Capita Average amount of water that is available per person from rivers and groundwater each year.

Differences in Communications Connectivity Around the World

Dependency Ratio 2008

What does development look like?

Types of Economic Systems Subsistence economies : goods and services are created for the use of the kinship group. Subsistence economies : goods and services are created for the use of the kinship group. Commercial economies : producers or their agents freely market their goods and services, following the law of supply and demand. Commercial economies : producers or their agents freely market their goods and services, following the law of supply and demand. Planned economies: associated with communist societies, when governments controlled the economies. Planned economies: associated with communist societies, when governments controlled the economies.

Categories of Activities/Jobs Occupational Structure of the Workforce: Ranges along a continuum of both increasing complexity of product or service and distance from the natural environment. Occupational Structure of the Workforce: Ranges along a continuum of both increasing complexity of product or service and distance from the natural environment. PRIMARY (agriculture) PRIMARY (agriculture) SECONDARY (industry) SECONDARY (industry) TERTIARY (services) TERTIARY (services) QUATERNARY (information) QUATERNARY (information)

Occupational Structure of Various Countries United States GDP $49,000 Agriculture.7%, Industry 20.3%, Services 79% Agriculture.7%, Industry 20.3%, Services 79% China GDP $8,500 Agriculture 37%, Industry 29%, Services 34% (2008 est.) Agriculture 37%, Industry 29%, Services 34% (2008 est.)

Occupational Structure Tanzania GDP $1,500 Agriculture 80%, Industry & Services 20% (2002 est.) Agriculture 80%, Industry & Services 20% (2002 est.) Brazil GDP $11,900 Agriculture 20%, Industry 14%, Services 66% (2003 est.) Agriculture 20%, Industry 14%, Services 66% (2003 est.)

Primary Activities Direct removal of natural resources from the earth: mining, forestry, and agriculture. These are most important in the LDCs. Subsistence Agriculture Subsistence Agriculture Fishing and Forestry Fishing and Forestry Mining and Quarrying Mining and Quarrying

Primary Products The percentage of people working in agriculture exceeds 75% in many LDC’s of Africa and Asia. In Anglo-America and Western Europe the figure is <5%

Trade in Primary Products Important to Developing Economies Important to Developing Economies Danger of Commodity Trade Dependence Danger of Commodity Trade Dependence Puerto Rico Coffee Plantation

Secondary Activities: Manufacturing Secondary - Processing and transforming natural resources: steel, textiles, auto assembly. These used to be most important in MDCs, but are increasingly important in the semi-periphery (Korea, Mexico, Brazil, Singapore)

Tertiary and Beyond: Services Provision of services in exchange for payment. Includes retailing, banking, law, education, and government. Education, R & D, and information technology becoming most important in the postindustrial core regions. Education, R & D, and information technology becoming most important in the postindustrial core regions. Less-developed countries often focus on tourism. Services historically were clustered into settlements. Increasingly the most important service centers are massive world cities.

Tertiary and Beyond: Services Less-developed countries often focus on tourism. Club Med, The Bahamas Vendors, Bali