Development and Deindustry

Per capita GNP –Mix of economies and social geography Some MDCs still changing slowly CONCEPTS OF DEVELOPMENT

Concepts and Approaches Classifying development –Countries with high levels of urbanization, industrialization, and high standards of living –opposite end of the development scale –The GNP index is commonly used to measure development

Concepts and Approaches Classifying development –Other measures of economic development Productivity per worker Dependency ratio Social indicator rates –Some the same no matter what Acute classification of 1960s & 1970s “Developing countries” –“Underdeveloped” vs. developed-developing

Concepts and Approaches The core-periphery model Core regions are those that have achieved high levels of socioeconomic prosperity Periphery regions are poor and dependent in significant ways on the core, and do not have much control over their own affairs Semi-periphery regions exert more power than peripheral regions, but are dominated to some degree by core regions –Place-specific economic relationships –Socioeconomic changes different everywhere –Uses various spatial scales What about the map?

Models of Development Types of models –Liberal models Assume that a) all countries are capable of developing economically the same way, and b) that economic disparities between countries & regions are the result of short-term inefficiencies in local or regional market forces –Structuralist models Treat economic disparities among countries or regions as the result of historically derived powers relations within the global economic system The Modernization model –Rostow’s five stages of country development 1.Traditional 2.Preconditions of takeoff 3.Takeoff 4.Drive to maturity 5.High mass consumption Dependency theory

Global Economic Disparities: Following History

Global Economic Disparities Conditions in the periphery –Unstable governmental infrastructures –Health issues & overcrowding –Poor, fragmented markets; farms –Extreme regional disparities Economic options –Many look toward industrialization –Various symbols of national “progress” –Tourism and development?

A Changing World Change occurs almost everywhere –Statistics not reflective of inequalities –E.g., Collapse of the Soviet Union –Marked improvement in some countries –Due to major political and economic changes –No longer use “Third World” –Many routes to development

DEINDUSTRIALIZATION & THE RISE OF THE SERVICE SECTOR

Categories of Service Industries The manufacturing boom –Fordist & Fordism –Oil in the 1970s –Service sector has three categories: Tertiary industries: provision of services (e.g., banking, retailing, education, etc.) Quaternary industries: collection, processing, and manipulation of information & capital Quinary industries: high-level of specialized knowledge or technical skill –Lend greater meaning to “postindustrial”

Geographic Dimensions of Economic Activity Wealth = success? –Deindustrialization not much help –Dominant cores –Example of Britain Old plants still operating Decline in Midlands and northern England Industrial relocation to city No tax base

The New Intl. Labor Division US & UK Countries and regions outside the core that have increased their manufacturing output most rapidly

The New Intl. Labor Division Trade is a tertiary economic activity Debts have exceeded revenues

Geographic Dimensions of Economic Activity New influences on location –Service industries Many are NOT tied to raw materials or energy Market accessibility is more relevant

Specialized Spatial Economic Patterns Among world cities

Specialized Spatial Economic Patterns Specialized economic zones: –Manufacturing export zones –High-tech corridors “Silicon Valley”; “technopoles” –Drawbacks of high-tech industry?

Geographic Dimensions of Economic Activity Tourism –~11 % of worldwide jobs –Linked to increases in income & leisure –Tourism has transformed many landscapes around the world Theme parks; Disneyfication; “Mouseification” of Broadway? – > $4,000,000,000,000 (trillion) industry!

Time-space Compression Impact Set of developments that have changed the way we think about time and space in the global economic arena –Opposite of time-space convergence –Faster transportation and communication –Transition from Fordist to flexible practices –Internet & World Wide Web –Geographical distribution mirrors map of “haves” and “have-nots”

Reading Torsten Häggerstrand, Time Geography –A short review of Häggerstrand’s pioneering work.

Discussion Topics Why do tertiary, quaternary, and quinary industries locate where they do? Is our world “shrinking”?