International Development The single most important geographic fact of development is its striking unevenness.

Development  The process of improving the material conditions of people through diffusion of knowledge and technology

What Do We Mean By Development?  The three objectives of development  increases in availability and improvements in the distribution of food, shelter, health, protection, etc.  improvements in ‘levels of living,’ including higher incomes, more jobs, better education, etc.  expansions in the range of economic and social choices available to individuals and nations

Supranational  An international organization, or union, whereby member states go beyond national boundaries or interests to share in the decision-making and vote on issues pertaining to the wider grouping.  United Nations

Human Development Index  Conceived by the UN  HDI calculates development not in terms of money or productivity, but in terms of human welfare.

Measuring Development United Nations Development Program Overview 2005 Click for Animated Graphs Click for Animated Graphs  Economic Indicators  Gross Domestic Product (GDP)  Types of Work (Economic Sectors)  Social Indicators  Education and Literacy  Health and Welfare  Demographic Indicators  Life Expectancy ( years)  Infant Mortality ( 100 per thousand)  Natural Increase ( %)

New International Division of Labor

Measuring Development  Social Indicators  Education and Literacy

Measuring Development  Social Indicators  Health and Welfare

Location of More and Less Developed Countries Development generally reflects a North-South split in the world.

Gender and Development  Gender-Related Development Index (GDI), compares the development of women with that of both sexes  Economic Indicator: Income  Social Indicator: School & Literacy  Demographic: Life expectancy rate

Gender Development  UN found evidence of gender inequality in every country of the world  Lower levels of income, literacy, and education  MDCs where women have achieved near-equality with men in living conditions, they still have much less economic and political power

Gender Development  Gender Empowerment Measure (GEM) compares the ability of women and men to participate in economic and political making  Economic: Professional Jobs  Political: Political Jobs

The End of Men?  Earlier this year, women became the majority of the workforce for the first time in U.S. history. Most managers are now women too. And for every two men who get a college degree this year, three women will do the same. For years, women’s progress has been cast as a struggle for equality. But what if equality isn’t the end point? What if modern, postindustrial society is simply better suited to women? A report on the unprecedented role reversal now under way— and its vast cultural consequences

Wal-Mart Vs. Women  The fate of the largest sex discrimination case in history, against the largest employer in the United States, now rests with a Supreme Court given to right-wing judicial activism. Walmart, the world’s biggest company, is currently facing a class-action lawsuit on behalf of hundreds of thousands of women who, the suit claims, have been paid less than male colleagues and routinely passed over for promotions. The company is arguing that these women don’t constitute a class, and that if they want to sue, they have to do so individually. So far, courts have ruled against Walmart. But yesterday, the Supreme Court agreed to hear Walmart’s appeal. Its ruling could have profound effects not just on the women of Walmart, but on the ability of all women to seek redress for sex discrimination. There is reason to be very worriedWalmart’s appeal

Strategies for International Development  Self-Sufficiency Model  Mexico  India  International Trade Model (Economic Growth)  Rostow’s Model  World Bank lending  Basic Needs Model/Appropriate Technology Model  Microlending (Grameen Bank, Kiva.org)Grameen BankKiva.org  Revolutionary/Radical Reform Model  Cuba, U.S.S.R

Development through Self Sufficiency  Elements for Self-Sufficiency  Must spread investment equally across all sectors & regions Incomes in the country keeps pace with incomes in the city (reduces poverty

Benefits of Self-Sufficiency  Isolates domestic business from foreign competitors & decisions made from businesses and governments in MDCs  Barriers to Encourage Self-Sufficiency  Tariffs (high taxes) on imported goods  Quotas on imported goods  Requiring licenses to limit the number of legal importers

India: Model of Self-Sufficiency  Difficult for foreign companies to receive licenses  Restricted quantity of foreign goods  Heavy taxes  Businesses were encouraged to produce goods for Indians  Government controlled most aspects of business  Hiring, modernization, prices, communication, transportation

Problems with the Self-Sufficiency Alternative  Inefficiency  Businesses can sell all they make at high government prices to customers on a waiting list  Lack of competiveness & creativity  “Indian Cars”  Large Bureaucracy  A large administrative system encourages abuse and corruption  More profit in the “Black Market”

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International Trade Approach  LDC exposed to consumers in foreign countries  Take off industries must stay innovative to compete  LDCs contain many raw material, many in which were extracted for free during the colonial era  Generate funds for LDCs

Rostow’s Model American economist and political advisor during 1950s developed model, arguing that each country passes through five stages from traditional society to high mass consumption.  TRADITIONAL SOCIETY  PRECONDITIONS FOR TAKE-OFF - elite group initiates economic innovations, leads to productivity.  TAKE-OFF - rapid growth in a number of specific economic activities, technical advances.  DRIVE TO MATURITY - Modern technology diffuses to a wide variety of industries  AGE OF MASS CONSUMPTION - economy shifts from heavy industry to consumer goods.

International Trade Approach  “Four Asian Dragons”  South Korea, Singapore, Taiwan, & Hong Kong Low wage manufacturing

International Trade  Arabian Peninsula  World’s LDCs transformed due to rising prices of petroleum in the 1970s

Problem’s with Rostow’s Model and the International Trade Approach Developmentalism : the idea that every country and region will eventually make economic progress toward “high mass consumption” provided that they compete to the best of their ability. This is not likely and is hard on the planet. Increased dependence on MDCs and their markets. Undue influence on many global policies, including those of the U.N. and World Bank. Market Stagnation: the MDCs have very limited population growth. Markets for low-cost manufactured goods grow slowly today. Undervalues the obstacles and competitive disadvantages faced by late starters versus those in the Core.

International Development  1990, GDP increased 4% compared to self-sufficient LDCs with a 1% increase

International Trade  World Trade Organization (WTO)  Made up of countries that constitute 97% of World Trade  WTO reduces trade barriers Negotiates reduction or elimination of international trade restrictions Promotes trade by enforcing agreements

Opponents of the WTO  Liberals argue that it is antidemocratic, because decisions are made behind closed doors promote interest of large corporations  Conservatives argue that it compromises the power & sovereignty of individual countries because it can order changes in taxes & laws that it considers unfair trading practices

Transnational Organizations  Foreign direct investment (FDI), investment made by a foreign company in the economy of another country.  1/3 MDC > LDC, ½ went to China  Major sources of (FDI) are transnational corporations

Financial Development  United Nations - formed in 1945 to promote peace. 189 current members.  World Bank - financial assistance and loans. Owned by 189 United Nations members.  International Monetary Fund - arm of U.N. that surveys and oversees international money exchange to prevent monetary crises. Also provides loans and training to help countries with balance of payment problems.  Non-Governmental Organizations (NGOs) - World Watch, Human Rights Watch, World Commission on Dams, Grameen Bank, Kiva.org, many others.

Other Problems in International Development  High Debt Countries  Hostility Regarding World Bank and IMF Structural Adjustment Programs  IMF “Free Market” Requirements for Loans and Assistance  Warfare and Instability Limit Foreign Investment  Core-Periphery Relationships May Be Necessary for Economic Growth  Within Countries  Globally

High Debt Countries Loans to LDCs by 2000 exceeded $2.1 trillion dollars. Interest payments consume some small economies, encouraging export earnings instead of internal improvements.

Warfare and Instability Limit Foreign Investment

Fair Trade  Fair Trade, means that products are made and traded according to standards that protect workers and small businesses.  Standards set by Fair-trade Labeling Organisations International, certifies that products sold in the U.S. that are fair trade   Pg. 321

Progress Towards Development NIR = Natural Increase Rate IMR = Infant Mortality Rate